・Brand Ambassadors：Comedian “Miyashita Kusanagi”
・Group Mascot：Coprou

Fiscal Year Ended March 31, 2023
Financial Results for FYE2023
May 15, 2023

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

Good evening everyone. I am Mr. Kiyokawa, president and representative directorof COPRO-HOLDINGS. Co., Ltd. Thank you very much for taking time out of yourbusy schedules to gather with us today.

0

SECTION

01

Summary of the Consolidated Financial Results for FYE2023

02

FYE2023 Business Summary03

FYE2024 Business Strategy

04

FYE2024 Earnings Forecast & Medium-Term Plan Progress

05

Change in the Dividend Policy & Dividend Forecast

06【Appendix】About COPRO Group©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

1

We have prepared six sections for today. Due to time constraints, I will omit the
6th section which is reference material about our company profile, so please take alook when you have the time.

1

01

SECTION 01

Summary of theConsolidated Financial
Results for FYE2023©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

2

2

Highlights of the Consolidated Financial Results for FYE2023
Net Sales

Non-GAAP Operating Profit

18,791million yen

1,606million yen

20.5％)(Vs. Forecast +2.2％)(YoY +

RecordHigh

12.8％)
5.6％)(YoY ▲(Vs. Forecast +Net Profit Attributable to the
Shareholders of the Parent Company

Number of Consolidated
Technicians and Engineers

864million yen

3,036 people
37.9％)
0.4％)(YoY▲10.2％)(YoY+(Vs. Forecast +18.9％)(Vs. Forecast +Point 1

Due to record high recruitment, the number of technicians and engineers reached a record high of 3,036 (up 835
YoY). Sales were also a record high.

Point 2In anticipation of business expansion from the next FY onwards, we will aggressively invest in recruiting costs,
mainly for dispatching construction technicians. Profits decreased at each stage due to upfront expenses.

Point 3

Sales and each category of profits exceeded the revised forecast (announced on November 14, 2022).

* The Vs. forecast rate is calculated based on the earnings forecast announced on November 14, 2022.
* 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.
* 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.

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

3

First, I will give an overview of our financial results for FYE2023. I will explain thehighlights of the consolidated financial results. Consolidated sales were ¥18,791
million, up 20.5% YoY, and up 2.2% from the forecast.
Non-GAAP operating profit was ¥1,606 million, down 12.8% YoY, and up 5.6%
from the forecast. Net profit was ¥864 million, down 10.2% YoY, and up 18.9%
from the forecast. On a consolidated basis, the number of technical employees was
3,036, an increase of 37.9% YoY, and an increase of 0.4% from the forecast.
Please look at the three points at the bottom of the slide. First, due to record highrecruitment, the number of technical employees reached a record high of 3,036, up
835 YoY. Sales were also a record high.
Second, in anticipation of business expansion from the next FY onwards, we haveaggressively invested in recruiting costs, mainly for dispatching construction
technicians. Profits decreased at each stage due to upfront expenses.
Third, sales and each category of profits exceeded the revised forecasts that wererevised upward on November 14, 2022.

3

Consolidated Financial Results for FYE2023（million of yen）
FYE2022

FYE2023
Vs. Revised Forecast(11/14 upwardrevision)Full year
results

Ratio

Full year
results

Ratio

Net sales

15,589100.0％

18,791100.0％+20.5％+3,202

+5.2％

+937

+2.2％

+410

Cost of sales

10,74468.9％

13,21670.3％+23.0％+2,471

+7.0％

+862

+3.4％

+437

Gross profit

4,844

31.1％

5,575

29.7％

+15.1％

+730

+1.4％

+74

△0.5％

△26

SG&A expenses

3,223

20.7％

4,253

22.6％

+32.0％+1,030

△5.0％

△222

△3.3％

△143

Operating profit

1,621

10.4％

1,321

7.0％

△18.5％△299+29.1％

+297

+9.8％

+117

Non-GAAP operating profit*

1,841

11.8％

1,606

8.6％

△12.8％△235+20.4％

+271

+5.6％

+85

Ordinary profit

1,619

10.4％

1,324

7.0％

△18.2％△295+29.2％

+299

+9.7％

+117

962

6.2％

864

4.6％

△10.2％△98+42.9％+259+18.9％+137

Earnings per share

102.12

－

93.09

－

－

△9.03

－

+28.04－+14.81

Number of consolidated techniciansand engineers (quarter end)*

2,201

－

3,036

－

+37.9%

+835

+0.4％

+12

+0.4％

+12

Profit attributable to owners ofparentYoY

Vs. Initial Forecast*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.

4

These are the consolidated results for FYE2023. Earlier I mentioned the numbers
for sales, non-GAAP operating profit and net profit. Please check the table on theslide.

4

Quarterly Consolidated Financial Results• Both sales and the number of technical employees in the fourth quarter increased from the previous quarter. It was arecord high on a quarterly basis.
• The number of consolidated technical employees exceeded 3,000 at the end of the fourth quarter.
*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

4,148

4,038
3,846

4,000

1,957

2,824

3,000

2,574
2,394

3,555
3,500

4,249

3,500

3,036

4,421

2,203

2,086

2,500

2,201

2,000

3,000
2,500

1,500
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

3,555

3,846

4,038

4,148

4,249

4,421

4,914

5,206

△5.7％

+8.2％

+5.0％

+2.7％

+2.4％

+4.0％

+11.2％

+5.9％

1,957

2,086

2,203

2,201

2,394

2,574

2,824

3,036

△3.1％

+6.6％

+5.6％

△0.1％

+8.8％

+7.5％

+9.7％

+7.5％

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

These are the quarterly consolidated results. As you can see from the graph on theslide, everything is trending upwards, and we have set new record highs on aquarterly basis.

5

02

SECTION 02

FYE2023
Business Summary©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

66

Construction Technician Dispatching: Major KPIs

Number of Technicians

2,777

people39.2％)(YoY+

Job Posting Requests(annual total)

Number of Hirings（incl. new grads）

Mid-Career Hiring Costs
per Technician

35,978

1,472

356

jobs

89.4％)(YoY+

people76.5％)(YoY+

thousand yen

28.5％)

(YoY+

◎

◎

〇

〇

Target Company
Assignment Rate

Contract Renewal Rate

Permanent Employee
Ratio

Retention Rate

89.0％

82.4％

42.0％

74.4％

1.6pts)(YoY+◎

3.8pts)(YoY+◎

21.2pts)(YoY+〇

5.0pts)(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

I will briefly explain the business overview for FYE2023. In the construction
technician dispatching business we have listed on the slide the KPIs that we place
importance on. The number of technicians at the end of the FY was 2,777, up
39.2% YoY. We have given a double circle mark “◎” for our internal evaluation
results.
The total number of job posting requests during the year was 35,978, an increaseof 89.4% YoY. The sales reform structure that we had built up over the past two
years has started to work properly, so we have given a double circle mark “◎” forour internal evaluation result.
The number of recruits, including new graduates, was 1,472 during the year, up
76.5% YoY. It was mostly as planned, but a little short. We must produce resultsthat were in line with the recruiting plan or exceeded the recruiting plan, so wehave given it a strict evaluation result of a single circle mark “◯”.

The unit price for recruitment of mid-career professionals is an indicator of how
much it costs to recruit one person. It was ¥356,000 for the year, up 28.5% YoY,
and we have given a single circle mark “◯” for our internal evaluation result. I will
explain this in more detail later.
Regarding the target company assignment rate, we have been able to assign 89%
of all technicians to our target customers. This was an increase of 1.6 points YoY,
and we have given a double circle mark “◎” for our internal evaluation result.

7

The contract renewal rate shows the percentage of contracts that are extended
even after the contract period expires. This is also an important indicator, and it
was 82.4%, an increase of 3.8 points YoY, so we have given it a double circle mark“◎”.
The permanent employee ratio increased by 21.2 points YoY, and has risen to 42%of the total. Measures to convert fixed-term employees to permanent employees
have stalled a little, so we have given it a single circle mark “◯”.
However, if we consider further increasing the retention rate, which we place
importance on, by further converting fixed-term employees to permanent
employees, we believe that it will be possible for them to work with stability andpeace of mind, leading to an improvement in the retention rate. While we werestrict in giving it a single circle mark “◯”, we believe that there is plenty of room
for improvement here.
The retention rate remained at a relatively high level of 74.4%, up 5.0 points YoY.
We have also given it a double circle mark “◎” for our internal evaluation result.
However, the ideal retention rate is 100%.
We would like people who join our company as technical employees to develop asolid career, learn a new job, and work in a fun and rewarding way. We don’t wantanyone to quit. In reality, this is a very difficult part, but we are aiming for aretention rate of 85% in the future, and if we can get closer to the ideal, we would
like to proceed with sales measures aiming for 90% in the future.

7

Construction Technician Dispatching: Expansion of Mid-Career
Professional Recruitment• In this FY, we prioritized top-line growth by securing human resources and actively investing in mid-career recruiting costs
as an upfront investment. Recruitment reform efforts were also successful, and the full-year plan (1,417 people) was

mostly achieved.
• Mid-career recruitment unit costs improved significantly in the second half due to a review of the recruitment process.

Number of Mid-Career Recruits（people）

Mid-Career Recruiting Costs per Technician（thousand yen）

YoY +616、 +79.2％

YoY ▲205
YoY ▲104

Record High

1,394

450
776

FYE2021
21/3期
21/3期
Annual results

346

778

FYE2022
22/3期
Annual results

277

FYE2023
23/3期
Annual results

FYE2022
22/3期
Annual results

245

FYE2023
23/3期
Results for 1H

FYE2023
Results for 3Q

FYE2023
Results for 4Q©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

8

I would like to talk about the expansion of mid-career professional recruitment in
the construction technician dispatching business. In this FY, we prioritized top-line
growth by securing human resources. We actively invested in mid-career recruiting
costs as an upfront investment, and due to the success of our recruitment reform
efforts, the number of mid-career recruits reached 1,394. We almost achieved ourfull-year target of 1,417.
In addition, mid-career recruitment unit costs improved significantly in the second
half due to a review of the recruitment process.
The bar graph on the left side of the slide shows the number of mid-career recruits.
The number of recruits increased from 778 in FYE2022 to 1,394 this FY, a record
high.
The bar graph on the right shows the per technician cost to recruit mid-career
professionals We set an internal target of around ¥200,000, but in the first half it
was ¥450,000, and the productivity of our recruitment worsened. In response to
the worsening in the first half, we thoroughly reviewed the recruitment process andwere able to significantly improve the unit price for recruitment in the second half.
In the second half, recruiting costs were about the same as in the first half, but the
number of mid-career recruits exceeded the number in the first half, resulting in a
decline in the cost per technician. Due to this, the results for the 4Q of FYE2023
decreased to ¥245,000.

8

Construction Technician Dispatching: Retention Rate Improvement

Sales to target
companies

Stable assignment with
contract renewals

Target Company
Assignment Rate

Contract Renewal
Rate

89.0％
(YoY+

(YoY+

5.0

％（YoY+

42.0％

3.8pts)

Improved by creating an environment where technicalemployees can work for a long time with peace of mind.

74.4

Permanent
Employment Ratio

82.4％

1.6pts)Retention Rate
FY total of

Promotion of shift topermanent employment

pts）

(YoY+

21.2pts)◼ Number of Turnover（people）

FYE2022 Full-year

859

FYE2023 Full-year

812

YoY
▲47

* 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.

9Now, I will explain the improvement in the retention rate. A key thing for us is how
long technicians work for our company. With the aim of improving the retention
rate, we are focusing on cultivating sales to target companies, and it has been a
success. The target company assignment rate was 89%, an increase of 1.6% YoY.
To put it simply, based on past data, our theory is that if people are assigned to acompany that is not our target, it will lead to a deterioration in the retention rate.
In response to this, we have improved the retention rate by preferentially assigning
people to target companies, starting with super general contractors, which are ourcustomers.
Regarding stable assignments due to the continuation of contracts, the contract
renewal rate is 82.4%. We believe that this number is an indicator of how highly
our customers rate us.
Regarding our promoting a shift to permanent employment, while the growth to
42% is slightly sluggish, we believe that the retention rate will increase further by
converting fixed-term employees to permanent employees. There is still room toshift people to permanent employment, so we would like to further strengthen thismeasure from this FY.
Through these efforts, we have created an environment in which technicians canwork for a long time with peace of mind, and the retention rate has improved
significantly.

9Construction Technician Dispatching: Recruitment, Turnover andRetention Rate
• The number of recruits for the full FYE2023 was 1,472 (up 76.5% YoY). The number of technicians has increased significantly
due to the success of active investment in recruiting costs. The retention rate was 74.4%, an improvement of +5.0pts YoY.
Trust activities for technicians and the target company assignment rate contributed.
• We plan to recruit 2,120 people for the full FYE2024, which would be a new record high, and much higher than the previous FY
record. Enrollment at the end of the FY is expected to increase by 40.0% YoY.
Recruitment and Turnover（people）
FYE2022
1Q
Total Recruited
New graduates
Second new graduates

2Q

230
56

3Q

208

FYE2023
4Q

213

0Full-year

183

0

0

1Q

834

2Q

293

56

3Q

315

54

FYE2024
4Q

417

0

Full-year

447

2

1,472

0

Full-year(forecast)
2,120

56

154

－

－

－

－

－

0

2

10

10

22

－

Mid-career

174

208

213

183

778

239

313

405

437

1,394

1,966

Turnover total

293

187

181

198

859

223

158

191

240

812

1,008

Net change

△63

+21

+32

△15

△25

+70

+157

+226

+207

+660

+1,112

0

0

0

0

0

+122

0

0

0

+122

-

1,957

1,978

2,010

1,995

1,995

2,187

2,344

2,570

2,777

2,777

3,889

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

Retention Rate
FYE2022
1Q

2Q

FYE2023
3Q

4Q

1Q

2Q

3Q

4Q

Retention rate (FY
accumulative total)

84.8％

79.3％

74.6％

69.4%

89.7％

84.2％

79.0％

74.4％

Retention rate (LTM)

68.0％

69.5％

69.2％

69.4%

71.8％

72.3％

72.7％

74.4％

*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.

10This is about recruitment, turnover and the retention rate. The number of recruits
for the full fiscal year is as we have announced. The retention rate shown in thetable at the bottom of the slide has also improved over the past year.

10Construction Technician Dispatching: Number of Technicians andUtilization Rate
• The number of technicians at the end of FYE2023 was 2,777, a significant increase of 39.2% YoY. The cumulative utilization
rate for the full FY was 96.4% (down 0.5pts YoY). Due to the impact of people taking paid leave as a result of the coronavirus,
the previous FY results were slightly lower, but the high level was maintained.
• The number of technicians at the end FYE2024 is expected to increase by 40.0% YoY to 3,889, a significant increase for two
years in a row.
97.4%
97.0%
5,500
5,400 95.8%
5,300
5,200
5,100
5,000
4,900
4,800
4,700
4,600
4,500 （people, as of the end of the month）
4,400
4,300
4,200
4,100
4,000
3,900
3,800
3,700
3,600
3,500
3,400
3,300
3,200
3,100
3,000
2,900
2,800
2,700
2,600
2,500
2,400
2,300 2,020
2,200
1,978
1,957
2,100
2,000
1,900
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
21/3

21/6

21/9

97.3%

96.7%

96.6%

97.1%

96.3%

100%

95.0%
YoY
＋40.0％

3,889

YoY＋39.2％

80%

2,570

2,010

2,187

90%

2,777

70%

2,344

1,995

60%

50%

40%
21/12

22/3

22/4

22/6

22/9

22/12

23/3

24/3
(forecast)Technical
技術者数
employees

Utilization
稼働率
Rate

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

11This is a graph of the number of technicians and the utilization rate. The utilization
rate has stayed between 95% and just over 97%. We are maintaining a highutilization rate even as the number of technicians increases.

11

Mechanical Design and Development Engineer Dispatching andContracting: Recruitment, Turnover and Retention Rate
• In FYE2023, we strengthened sales in new areas such as software development and semiconductors. In addition, we
increased the number recruited by investing in recruiting costs and expanding the range of those recruited, such as expert
human resources and inexperienced people, mainly in the dispatching business.
• In FYE2024, we will continue to invest in recruiting costs and strengthen our recruiting system, and we anticipate a further
increase in the number of recruits.
Recruitment and Turnover（people）
FYE2022

2Q
3Q(June-Aug) (Sep-Nov)

FYE2023

4Q(Dec-Mar)

Full-year

3Q(Oct-Dec)

4Q(Jan-Mar)

Full-year

Full-year(forecast)

Total Recruited

2

3

15

20

14

23

25

23

85

123

New graduates

0

0

0

0

1

０

0

0

1

4

Mid-career

2

3

15

20

13

23

25

23

84

119

Turnover total

1Q
2Q(Apr-June) (July-Sep)

FYE2024

5

5

5

15

8

11

11

12

42

30

Net change

△3

△2

+10

+5

+6

+12

+14

+11

+43

+93

Number of technicians(quarter end)

108

106

116

116

122

134

148

159

159

252

*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
2Q(June-Aug)

3Q(Sep-Nov)

FYE2023
4Q(Dec-Mar)

1Q(Apr-June)

2Q(July-Sep)

3Q(Oct-Dec)

4Q(Jan-Mar)

Retention rate (FY
accumulative total)

95.4%

91.7%

88.9%

93.1%

89.7%

85.3%

81.0％

Retention rate (LTM)

92.7%

90.8%

88.9%

84.7%

85.2%

84.9％

81.0％

*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.

12

I would like to explain about the business for mechanical design and development
engineer dispatching and contracting, which accounts for about 5% of consolidated
sales.
In FYE2023, we have aggressively strengthened sales in the new areas of softwaredevelopment and semiconductors. In addition, just like in the construction
technician dispatching business, we have actively invested in recruiting costs, andexpanded the range of those recruited, such as experts and inexperienced people,
mainly in the dispatching business, resulting in an increase in the number of
recruits.
We will continue these measures in FYE2024, and expect to further increase thenumber of recruits by strengthening our recruiting system.
Please look at the retention rate table at the bottom of the slide. At over 80%, wehave a high retention rate. As for the retention rate, we will not be satisfied withthe current situation and will spare no effort to further increase it.

12Mechanical Design and Development Engineer Dispatching and Contracting:Number of Engineers and Utilization Rate
• In FYE2023, the number of engineers recruited has expanded, mainly in the dispatching business, and the number ofengineers has increased steadily. The cumulative utilization rate for the full FY remained at 97.5%, with almost 100% utilized
except for engineers undergoing in-house training.
• At the end of FYE2024, the number of engineers is expected to significantly increase by 58.5% YoY to 252 for the second
consecutive FY.

98.1%
99.1%
370 99.1%
360
350
340
330
320 （people, as of the end of the month）
310
300
290
280
270
260
250
240
230
220
210
200
190
180
170
160
150
140
130
111
108
106
120
110
100
90
80
70
60
50
40
30
20
21/6

21/8

21/11

98.3%

96.7%

97.0%

98.6%

97.5%

100%

YoY
＋58.5％

252

YoY＋37.1％

122

116

134

148

90%

80%

70%

159

60%

50%

40%
22/3

22/4

22/6

22/9

22/12

23/3

24/3
(forecast)Technical
技術者数
employees

稼働率
Utilization rate
©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

13

This is about the number of engineers and the utilization rate for the business of
mechanical design and development engineer dispatching and contracting. As you
can see from the line graph on the slide, we are maintaining a high utilization rate.
The bar graph shows the number of engineers. Regarding the number of engineers
in FYE2024, we are planning for it to be 252, up 58.5% YoY.

13

SES: Number of Applicants, Recruits and Engineers• In addition to the success of new sales by expanding the sales system, the number of recruits increased significantly YoY due
to aggressive investment in recruiting costs.
• In response to customer requests, we have increased the number of engineers by increasing the number of freelance anddirectly employed dispatched staff in a hybrid manner.

Applicants and Recruitment（people）
FYE2022
3Q

4Q

FYE2023
Full-year

1Q

2Q

3Q

4Q

Full-year

Number of applicants

70

250

320

213

408

354

264

1,239

Number of recruits

6

10

16

14

22

17

15

68

Number of Engineers（people, as of the quarter end）
FYE2022
3Q

Number of engineers

4Q

Full-year

1Q

2Q

FYE2023

FYE2024

3Q

Full-year(forecast)

4Q

Full-year

88

90

90

87

97

108

100

100

QoQ changes

－

+2

－

△3

+10

+11

△8

－

130
－

Changes from the end of
the previous 4Q

－

－

－

△3

+7

+18

+10

+10

+30

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

14This is about the SES business related to the IT area. While there are some whoare dispatched, this is an area related to IT freelancers.
This business is handled by our subsidiary VALUE ARK CONSULTING. In FYE2023,
the number of recruits increased significantly YoY due to the success of new sales
activities by expanding the sales system, and aggressive investment in recruiting
costs.
Also, in response to customer requests, we have increased the number ofengineers by increasing the number of freelance and directly employed dispatchedstaff in a hybrid manner.

14

SES：Number of Engineers
Strengthening such initiatives as sales, recruitment, and trust activities for engineers while investing in growth such as
personnel and expenses. The number of people utilized increased steadily as business activities expanded.

YoY＋30.0％（people, as of the end of the month）

130

YoY
＋11.1％

108

100

97
90

21/10

88

21/12

90

22/3

87

22/4

22/6

22/9

22/12

23/3

24/3
(forecast)©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

15

This shows the number of engineers in the SES business. In the previous fiscal year,
the number of employees increased by 11.1% YoY, but this fiscal year, we achieved
a 30% increase. We will make the mechanical design and development engineer
dispatching and contracting business, and the SES business for the IT field, thesecond and third pillars after the construction segment.
In this way, while properly capturing the construction dispatching market, we
would like to firmly establish our second and third pillars at the same time.

15

03

SECTION 03

FYE2024
Business Strategy©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

16

16

Construction Technician Dispatch Business Strategy (1)• In FYE2024, we will accelerate the speed of expanding our size by enlarging the two wheels of sales and recruitment.
• We will transition to a profit generation phase from FYE2024.

Number oftechnicians

doubledSales
17.5
bin yenin just two years

Sales
14.8
Bln yen

Number oftechnicians
2,777

Number oftechnicians

3,889
Sales

Number oftechnicians
1,995

FYE202222.3
bln yenFYE2023✓ Significant increase in thenumber of projects acquiredby implementing sales
reforms✓ Recruitment reform
implemented, resulting in asignificant increase in thenumber recruited✓ Due to recruitment loses,
unable to increase thenumber of technicians✓ Perfection of the two wheelsof sales and recruitment

FYE2024(forecast)✓ Enlarging the two wheels of sales andrecruitment✓ Accelerating growth through expanded
reproduction✓ Construction of a “Technician Support Platform”©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

17This is our business strategy for FYE2024. The last two years were a period ofsluggish sales. Therefore, we reviewed the original system itself from scratch andimplemented sales and recruitment reforms.
We have spent two years reviewing the internal system of sales activities and hiring
activities, with an aim to achieve sales of ¥40 billion, which is the goal of theMedium-Term Management Plan, and then the goals of ¥80 billion and ¥100 billion
in the future. This is not the end, and we believe that it will become extremely
important to further update the structure itself in the future.
The diagram on the slide shows the timeline and sales, and the number oftechnicians. This FY is the middle part. As the forecast for FYE2024, we expect
sales of ¥22.3 billion and the number of technicians to be 3,889.
In the construction segment, we are planning a significant increase, doubling thenumber of technicians in just two years from FYE2022. We think it depends on theinvestor's way of thinking about what kind of growth this is. However, we are notsatisfied with the current situation, and we would like to raise the level even further
toward March 2027, the final year of the Medium-Term Management Plan, andbeyond.

17

Construction Technician Dispatch Business Strategy (2)Formation on Nov. 14, 2022

Feb. 13, 2023 Business AllianceBusiness Alliance with
SpiderPlus & Co.

Blue Innovation Co., Ltd.

Introducing accelerated
support for
construction DX service“SPIDERPLUS”

Training forconstruction DX
service”SPIDERPLUS”

Joint PR activities fordevice integrated
platform “Blue Earth
Platform®”

Participating in
training course
for specialists
in the use of drones
and robots©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

18

I would like to talk about alliances and business partnerships with companies in theconstruction technician dispatching field. While this was explained in previous
announcements for our financial results, we have business alliances with SpiderPlus& Co., and Blue innovation Co., Ltd., which aims to improve productivity in theconstruction industry by utilizing drones and robots.
What we must further strengthen this FY is building a track record with SpiderPlus& Co. Currently, we are training our technicians for the construction DX service"SPIDERPLUS", and we are working on thoroughly educating them and sending
them to our customers after adding value. We believe that we must increase a
sense of speed here, and pursue quantitative and qualitative aspects, and we arefocusing on this.
Regarding the business alliance with Blue innovation Co., Ltd., it will become
necessary to use drones to inspect the areas of buildings and plants in the future.

In order to deal with the issue of having to raise productivity amid an
overwhelming labor shortage, by forming alliances with SpiderPlus & Co., which
has a high-value-added construction DX service, and Blue innovation Co., Ltd.,
which aims to improve productivity by utilizing drones and robots, we will increase
the unit price or increase the number of assignments by adding value to ourtechnical employees. And we would like to build the next-generation technician
dispatching standard with our own hands.

18

Mechanical Design and Development Engineer Dispatching andContracting: Business Strategy

FYE2023
Measures

FYE2024
Measures• With the aim of expanding the dispatching business, we opened a Tokyo branch in May
2022 to develop new customers.
• Expanded the dispatch business to the semiconductor industry as a new area by
concentrating sales and recruitment resources.

The number of engineers and sales are expected to increase by
more than 50% YoY by investing in personnel and recruiting
costs mainly in new priority areas (software andsemiconductors).

• Strengthening the development of new customers starting from the Tokyo branch opened in
the previous FY.
• Strengthening charge-up negotiations for engineers assigned in the previous FY, andpromoting team dispatch of experienced and inexperienced people.
• Due to the increase in recruiting costs and the expansion of the recruiting system, thenumber of recruits is planned to increase by 44.7% YoY to 123.

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

19This is about measures this FY for the business of mechanical design anddevelopment engineer dispatching and contracting. In the future, the fields ofsoftware and semiconductors will become very important in Japan. Seeing this as a
new priority area, we will recruit and train engineers who match with software or
semiconductor projects and send them to our customers. We will also try to
improve the retention rate in future.
As for the measures that we have worked on in the construction segment, it isimportant to also similarly deploy them in the mechanical design or IT fields. This
will lead to increased sales as we consider such things.

19

SES Business Strategy• On March 6, 2023, launched “Bscareer IT”, Japan's largest project introduction site for IT engineers.
• The comedy duo Miyashita Kusanagi were appointed as the brand ambassadors to strengthen the branding.
• We aim to increase the number of recruits by investing in recruiting costs.

Bscareer IT
https://www.bscareer-it.jp/©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

20

Here I will discuss the IT field. On March 6, 2023, we launched “Bscareer IT”, oneof the largest project introduction sites for IT engineers in Japan, which is handled
by our subsidiary VALUE ARK CONSULTING. Using the comedy duo Miyashita
Kusanagi who we appointed as our brand ambassadors, we would like to further
strengthen branding, strengthen advertising, and strengthen recognition, so as toexpand recruiting in the IT field.

20

04

SECTION 04

FYE2024
Earnings Forecast& Medium-Term Plan
Progress©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

21

21

FYE2024 Consolidated Earnings Forecast Summary
Net Sales

Non-GAAP Operating Profit

24,298million yen

2,140million yen

29.3％)(YoY+

RecordHigh

33.2％)(YoY+

Net Profit Attributable to the
Shareholders of the Parent Company

Number of Consolidated
Technicians and Engineers

1,167million yen

4,271people(YoY+35.0％)

RecordHigh

40.7％)(YoY+

RecordHigh

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 inrevenue, and by achieving both growth in our size and profit generation, we expect both sales and profits to reach record
highs.

Point 3In the first quarter, due to the increase in new graduate employees, the burden of standby labor costs (cost of sales)
during the training period, and selling and administration expenses, such as personnel costs, will be large, but we expect
to secure profit growth in the 1H.

*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.

22

I will briefly explain the earnings forecast for FYE2024, and the progress of theMedium-Term Plan, which has entered its second year. The slide shows a summaryof the consolidated earnings.
Sales are forecast to be ¥24,298 million, an increase of 29.3% YoY. Non-GAAP
operating profit is expected to be ¥2,140 million, up 33.2% YoY, a record high. Net
profit is expected to be ¥1,167 million, up 35% YoY, and the number ofconsolidated technical employees is expected to be 4,271, up 40.7% YoY.
We are aiming for record highs in sales, operating profit, net profit and the numberof consolidated technical employees. We will continue to implement measures tosteadily achieve these numbers.

22

Financial Forecast for FYE2024（million of yen）

FYE2023
1st Half

Full-year

FYE2024（forecast）
Ratio

1st Half

YoY

Full-year

Ratio

YoY

Net sales

8,670

18,791100.0％

11,203+29.2％

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*

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 ofparent

280

864

4.6％

316

+12.7％

1,167

4.8％

+35.0％

Earnings per share

30.20

93.09

－

34.00

－

125.57－－

Number of consolidated techniciansand engineers (quarter end)*

2,574

3,036

－

－

－

4,271

－

+40.7％*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.

23This slide shows the P/L of the consolidated earnings forecast for FYE2024, butsince I explained the summary earlier, I won’t go into detail.

23

Progress of the Medium-Term Management Plan
• Continuing from FYE2023, the earnings forecast for FYE2024 is expected to exceed the targets of the Medium-Term Plan.
• In the construction technician dispatching business, which is our main business, the results of the sales and recruitment
reforms that have been promoted up to the previous FY are expected to bear fruit, and we expect to enter a profit creation
phase, which will be a harvesting stage from FYE2024.
• Accelerating growth to achieve the Medium-Term Management Plan performance targets ahead of schedule by aggressively
pursue M&A deals geared towards new growth while realizing outstanding organic growth in existing businesses which will goover the Medium-Term Management Plan.

Consolidated Net Sales

Non-GAAP Operating Profit（million of yen）

YoY
＋29.3％

5,000
YoY＋33.2％

33,000

YoY＋20.5％

3,900
Forecast
24,298Results
18,791
17,85426,80021,8702,750

15,589

1,841
1,334

FYE2022

FYE2023（million of yen）

40,000FYE2024

FYE2025 FYE2026 FYE2027

Medium-term management plan
Results・Forecast

Medium-Term
Management Plan Targets

FYE2022

Results
1,606

FYE2023

Forecast
2,140
1,995

FYE2024

FYE2025 FYE2026 FYE2027

Medium-term management plan
Results・Forecast

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

24This is the progress of the Medium-Term Management Plan. I would like to discuss the topics
listed in the upper part of the slide.
Continuing from FYE2023, the earnings forecast for FYE2024 is also expected to exceed thetargets of the Medium-Term Plan. In construction technician dispatching, which is our main
business, the results of the sales 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.
In addition to the organic high growth of existing businesses exceeding the Medium-Term
Plan, we will aggressively promote M&A in order to achieve intermittent growth, and we will
accelerate growth to achieve our Medium-Term Plan performance targets ahead of schedule.
The graphs on the slide show consolidated sales and non-GAAP operating profit. This time,
we disclosed numerical targets for FYE2025 and FYE2026 for the first time. Non-GAAP
operating profit is projected to be ¥2,750 million for FYE2025, and ¥3,900 million for
FYE2026.

In addition, while bringing the measures we are currently working on to fruition, we willproceed with the construction of a "Technician Support Platform" in order to realize the ideal
world that we are seeking to support technical employees. At the start of the third year of
the Medium-Term Management Plan, we would like to expand the operation of the“Technician Support Platform”.

24

05

SECTION 05

Change inthe Dividend Policy& Dividend Forecast©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

25

The explanation is now over. Thank you for watching today.

25Changes to Our Dividend Policy
Dividend Policy Before 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 during the period covered by themedium-term management plan "COPRO Group Build the Future 2027" (from FYE2023 to FYE2027), depending on
the profit growth achieved through aggressive investment.

In addition to a progressive dividend policy that does not reduce dividends during
the period of the Medium-Term Management Plan (FYE2023-FYE2027), and inorder to clarify an increase in dividends that is in line with the profit growth, wehave added a “dividend payout ratio target” to the existing policy as a benchmark
for calculating dividend amounts.
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 to FYE2027), depending on the profit growth achieved throughaggressive investment.

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

26

This details the changes to our dividend policy. Yesterday, at the same time that weannounced our financial results, we changed our future dividend policy. Since ourprevious dividend policy did not include a clear quantitative target value, we haveadded a target for the dividend payout ratio.
As stated at the bottom of the slide, we have revised our policy as follows:“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", depending on the profit growthachieved through aggressive investment.”
We have added “maintain a consolidated dividend payout ratio of 50% or more” toour dividend policy as a clear quantitative target.

26

Dividends Forecast• 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 63.7%.

100
95

63.7%

（yen）

85

80.0

80

35.1%

75
70

39.2%

20.2%

55

30.0%

18.5%
50.0

50
45

37.5

40
35

30.0

30

21.0

25
20
15
10

15.0
15.0

1.0

50.0

40.0

FYE2019

20.0%
10.0%

2.5

0.0%
40.0

25.0

30.0

-10.0%
30.0

20.0

5
FYE2018

20.0

50.0%
40.0%

26.1%

65
60

60.0%

53.7%

90

10.0

10.0

10.0

10.0

FYE2020

FYE2021

FYE2022

FYE2023

Ordinary dividend (interim)

Ordinary dividend (year-end)

Commemorative dividend (year-end)

Dividend payout ratio (%)-20.0%-30.0%

FYE2024(forecast)*The commemorative dividends were for listing on the stock exchange in FYE2019, and moving to the first sections of the Tokyo Stock Exchange and the Nagoya Stock Exchange in FYE2021.
*The dividend per share has been retroactively revised to take into account the impact of the one-to-two stock split implemented on April 1, 2021.

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

27

This is our dividend forecast for this fiscal year. As shown in the upper part of theslide, for FYE2024 we are forecasting an annual dividend of 80 yen per share, anincrease of 30 yen YoY. Assuming an annual dividend of 80 yen, the consolidated
dividend payout ratio is forecast to be 63.7%.
Looking at the graph, we increased the dividend by 10 yen at the end of theprevious fiscal year, resulting in an annual dividend of 50 yen. However, for thisfiscal year, we are forecasting an interim dividend of 30 yen, a year-end dividend of
50 yen, and an annual dividend of 80 yen.
This concludes my briefing on the financial results for FYE2023. Thank you.

27

06

SECTION 06【Appendix】
About COPRO Group©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

28

28

Company Outline

COPRO-HOLDINGS. Co., Ltd.
Representative

Kosuke Kiyokawa, CEO

Head office

Dai Nagoya Building 25F , 328-12 Meieki, Nakamura-ku,
Nagoya, Aichi

Date ofestablishment

October, 2006

Security code

7059

Net Sales Ratio for FYE2023

Consolidated Net Sales

18,791million yen

Subsidiaries
COPRO-ENGINEERD Co., Ltd.
Construction Technician Dispatching Business
ATMOS Co., Ltd.
Mechanical Design and Development
Engineer Dispatching and Contracting
VALUE ARK CONSULTING Co., Ltd.
System Engineering Business: 93.4%: 5.4%: 1.2%©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

29

29

About Our BusinessTraining & Dispatching Excellent Technical Employees
COPRO
Career development support,
Latest technical training,
Appropriate evaluation system

Offering thebest working style

Offering thebest workers
Clientcompanies

Technical
employees

Value-added
improvement astechnical employees

Providing labor,
Assigning jobs

Securing excellent
human resources©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

30

30

Business Characteristics

A “stock-type business” with high growth potential
By increasing sales in proportion to the number of dispatched technical employees,
stable earnings growth can be expected(hundred mln yen, people)

4000

4,271

Achieved 17 consecutive years of revenue growthsince our founding

3500

300

250
3,036

*The number of consolidated technical employees is the number of employees at the end of the FY,
3000
including IT freelancers in the SES business.

242
200

2,201

2500
1,984

2,020

187

2000
148

1500

150

155

131
100

1000
500

50
0
-500

0

FYE2007(1st FY)

FYE2020 FYE2021 FYE2022 FYE2023

Consolidate net sales

FYE2024（forecast）

Number of consolidated
technicians & engineers©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

31

31

Business Environment: Construction Industry
The manpower shortage is becoming more serious due to the chroniclabor shortage and the application of the revised Labor Standards Law *1
Number of construction workers *2

Application of the revised Labor
Standards Law *1

29.2% drop from the peak in FY2021

Tight labor supply and demand(Unit: 10,000 people)

685

due to the application of the upper limit regulation.
Long working hours need to be improved while theworking population remains in short supply *3

13
6.2

Months
485

Time/person

1997

2002

2007

2012

2017

2021

All industries

16
3.5

MonthsTime/
personConstruction industry*1 From April 2024, the upper limit of overtime work under the revised Labor Standards Law will also apply to the construction industry.
*2 From the “Labor Force Survey” of the Ministry of Internal Affairs and Communications*3 From the “Monthly Labor Statistics Survey” of the Ministry of Health, Labor and Welfare©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

32

32

Business Environment: Construction Technician Dispatch Industry

Due to intensifying recruitment competition, several major
companies are expected to expand their market share
Size of construction technician dispatch market *1
The construction technician
dispatch market willcontinue to expand

The market share of the 6 listed companies
is low at 35%, and there are many micro,
small and medium-sized enterprises.
Amid intensifying competition to acquire
human resources, small and medium-sizedenterprises are expected to face difficulties
in growing their own companies.

Others：63％
Y社

2,823
bln yen

T社
O社

W社 U社 W社

Ourcompany:
5.2%

In the future, it is expected that top-ranked
companies will acquire more mkt sharefrom lower-ranked companies.

* Market size is our estimate (FY2021).
* Figures for the dispatch of construction technicians are posted
from the latest financial statements of each company.
* Figures less than 100 million yen are rounded down.

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

33

33

Business Environment: Construction Technician Dispatch Market Size
Forecast(hundred mln yen)

6,052

Average annual
growth rate

+8.8%

5,558
5,105
4,689

4,308

3,958
3,637

3,342
2,823

2021

3,072

2022

2023

2024

2025

2026

2027

2028

2029

2030

* Estimated by our company©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

34

34

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 forwardlooking 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.

3535