Fiscal Year Ending March 31, 2023

Financial Resultsfor 1st Quarter
August 10, 2022

COPRO-HOLDINGS. Co., Ltd.
Tokyo Stock Exchange-Prime, Nagoya Stock
Exchange Premier (Ticker Symbol: 7059)

0

Table of Contents

1. Summary of the Consolidated Financial Results

2. Major Initiatives in Construction Technician Dispatching

3. FYE2023 Financial Forecast

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

1

This presentation explanation note is covering the point one to three written
above.

1

1. Summary of the Consolidated Financial Results

2. Major Initiatives in Construction Technician Dispatching

3. FYE2023 Financial Forecast

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

22

Consolidated Financial Highlights• Net sales increased significantly by +19.5% YoY. COPRO-ENGINEERD, a core business, which dispatches construction technicians
increased sales due to the increase in the number of hires, and the transfer of technicians after taking over business from Hucoss Co.,
LTd. ATMOS and VALUE ARK CONSULTING, which were consolidated last fiscal year, also contributed to the rise in sales.
• Operating profit and non-GAAP operating profit decreased by 17.0% and 3.5%, respectively, due to active investment in recruitment
costs to secure excellent human resources, which is positioned as upfront investment for business expansion from the next fiscal year
onward.
• Profit at each stage is steadily increasing compared to the first half forecast.

（million of yen）
FYE2022

FYE2023

YoY Change

FYE2023

1Q

Ratio

Pct Change

Amount of
Change1H Forecast

Progress Rate

Net sales

3,555

100.0%

4,249

100.0%+19.5％

+693

8,144

52.2％

Cost of sales

2,491

70.1％

2,972

70.0％

+19.3％

+481

5,662

52.5％

Gross profit

1,063

29.9％

1,276

30.0％

+20.0％

+212

2,482

51.4％

SG&A expenses

786

22.1％

1,045

24.6％

+33.0％

+259

2,193

47.7％

Operating profit

277

7.8％

230

5.4％

-17.0％

-47

289

79.7％

Depreciation

28

0.8％

33

0.8％

+18.4%+5--

Amortization of goodwill

-

-

26

0.6％

-

+26

-

-

Shared-based remuneration expenses

5

0.1％

9

0.2％

+85.9%

+4

-

-

311

8.7％

300

7.1％

-3.5％

-10

427

70.3％

Non-GAAP operating profit*

1Q

Ratio

Ordinary profit

277

7.8％

230

5.4％

-16.8％

-46

290

79.6％

Profit attributable to owners of parent

154

4.3％

135

3.2％

-12.4％

-19

158

85.4％

Number of consolidated technicians &engineers (quarter end)*

1,957

-

2,394

-

+22.3%+437--*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.

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

3

The summary of the consolidated financial results:
Sales raised mainly on account of the number of technicians increased namely, newly joined
employees hired by COPRO-ENGINEERD, our core business, which dispatches construction
technicians, and the transfer of technicians accompanying the takeover of the Hucoss Co., Ltd.
Moreover, the contribution of ATMOS and VALUE ARK CONSULTING, which were newly
consolidated in the previous fiscal year, resulted in a significant YoY increase of 19.5% in sales.
Regarding the profit, operating profit and non-GAAP operating profit decreased by 17.0% and3.5%, respectively, due to active investment in recruitment costs to secure excellent humanresources, which is positioned as upfront investment for business expansion from the next fiscal
year onward.
Furthermore, in the first half of FYE2023, the progress rate is proceeding smoothly. In the firstquarter, the progress rate for sales was 52.2%. Operating profit was 230 million yen, with aprogress rate of 79.7%. Non-GAAP operating profit was 300 million yen, with a progress rate of
70.3%.
In addition to these financial result highlights, for the COPRO Group’s medium-term management
plan, which started this fiscal year, each division is currently working on creating systems andimproving productivity, etc.

3Non-GAAP Operating Profit• The top line of COPRO-ENGINEERD, which dispatches construction technicians, has grown due to an increase in the number oftechnical employees. On the other hand, SG&A expenses increased due to aggressive hiring expenses and compensation payments
associated with taking over business from Hucoss, which contributed a profit decrease of 15 million yen.
• ATMOS, which was newly consolidated from the second quarter of FYE2022, contributed a profit decrease of 15 million yen due to anincrease in personnel and hiring expenses aimed at strengthening sales and recruiting.
• VALUE ARK CONSULTING, which was newly consolidated from the third quarter of FYE2022, absorbed the increase in personnel
expenses due to the expansion of personnel, and contributed a profit increase of 19 million yen.
COPRO-ENGINEERD- 15

VALUE ARKCONSULTING
+19

ATMOS
- 15

（million of yen）

Increase in
SG&A

Increase in
SG&A

311
Increase in grossprofiton salesｰ148

Dispatchingbusiness
Increase ingross profit

Contracting
business
Increase ingross profit

ｰ50

300
Increase inoperatingprofitｰ1

Other(Company-wideand elimination)

Non-GAAP Operating Profit-10 million yen（-3.5％）
FYE2022 1Q
Non-GAAP Operating Profit

FYE2023 1Q
Non-GAAP Operating Profit*As a profit index to measure essential performance, non-GAAP operating profit is calculated by adding depreciation, amortization of goodwill and share-based remuneration expenses back to operating profit.

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

4

The details of non-GAAP operating profit:
The top line of COPRO-ENGINEERD, which dispatches construction technicians, has grown
greatly due to an increase in the number of technicians. On the other hand, selling andadministration expenses increased due to aggressive hiring expenses and compensation
payments associated with taking over business from Hucoss Co., Ltd., which contributed a profit
decrease of 15 million yen.
ATMOS, which was newly consolidated from the second quarter of FYE2022, contributed a profit
decrease of 15 million yen due to an increase in personnel expenses aimed at strengthening sales
and recruiting.
In addition, VALUE ARK CONSULTING, which was newly consolidated from the third quarter of
FYE2022, absorbed the increase in personnel expenses due to the expansion of personnel, andcontributed a profit increase of 19 million yen.
When it comes to YoY first quarter comparison, the gray bar graph on the far left shows nonGAAP operating profit for the first quarter of FYE2022, which was 311 million yen. The dark blue
bar graph on the far right shows that of FYE2023, which was 300 million yen.
The sum of the consolidated non-GAAP operating profit resulted in a decrease of 10 million yen
YoY, decreasing 3.5% with COPRO-ENGINEERD minus 15 million yen, ATMOS minus 15 million
yen and VALUE ARK CONSULTING plus 19 million yen.

4

Quarterly Consolidated Financial Results• Net sales in the first quarter reached a record high as the number of engineers and technicians increased.
• Non-GAAP operating profit for the first quarter decreased from the previous quarter (FYE2022 4Q) mainly because of the increase in
the cost of sales ratio due to standby labor costs as new graduates were trained at COPRO-ENGINEERD, and the increase in SG&A
expenses such as hiring costs.
（people）（million of yen）

4,500
4,038

4,000

3,796
3,573

3,500

3,376

3,023

3,000

1,686

3,149

1,984

3,606

2,044

3,664

2,002

3,846

3,768
3,555

2,054

2,020

1,879

4,148

4,249

2,394
2,203

2,500

2,201

2,086
1,957

2,000

1,763

2,500

1,500
1Q

2Q

3Q

4Q

1Q

FYE2020

2Q

3Q

4Q

1Q

FYE2021

2Q

3Q

4Q

FYE2022

1Q
FYE2023
4,249

3,023

3,149

3,376

3,573

3,606

3,664

3,796

3,768

3,555

3,846

4,038

4,148

Non-GAAP operating profit

318

391

485

482

218

357

450

503

311

410

561

558

300

Number of consolidated
technicians and engineers

1,686

1,763

1,879

1,984

2,044

2,002

2,054

2,020

1,957

2,086

2,203

2,201

2,394

Net sales

3,000

Net sales

Number of consolidated technicians and engineers (quarter end)

*As a profit index to measure essential performance, non-GAAP operating profit is calculated by adding depreciation, amortization of goodwill and share-based remuneration expenses to operating profit.
*The number of consolidated technicians and engineers is the number of employees at the quarter-end of the fiscal year including IT freelancers in the SES business.

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

5

Quarterly consolidated financial results:
The blue bar graph shows sales for each quarter, and the red line graph shows the number oftechnical employees, both illustrating a smooth progression.
Although it is trending upward, we are not satisfied with the current situation, and we would like tofurther bolster the sales and recruitment reforms that we are currently promoting to create a solid
system, which we think would lead to significant growth.

5

1. Summary of the Consolidated Financial Results

2. Major Initiatives in Construction Technician Dispatching

3. FYE2023 Financial Forecast

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

66

Major Initiatives in Construction Technician Dispatching Business
Progress Evaluation

Main Initiatives for FYE2023 1Q
Strengthening
sales abilities



Expanding the amount of activity for sales representatives bymanaging sales process KPIs.



Boosting sales personnel at branches in Tokyo, Nagoya and Osaka
where construction demand is high.

Main Initiatives for FYE2023 1Q

Expandingthe number
hired

6,172
(YoY Change +214.6%)

 Achieved a certain result in raising thesales volume through sales reform
efforts

Progress Evaluation
1Q Mid-Career Hiring Costs

By increasing the number of hires and raising the internal
standard for hiring costs per person, mid-career hiring costs
increases 2.3 times from the previous fiscal year.
Expanding the amount of activity for recruiters by managing
recruitment process KPIs in order to deal with the increase in thenumber of interviews with applicants.

89 million yen 1Q hiring costs are slightly below the
Company’s internal plan(YoY Change +130.1%)

 The number of 1Q mid-career hires isin line with the Company’s internalplan

Strengthening the hiring system. In addition to increasing thenumber of hiring managers, shortening the lead time fromapplications to interviews by assigning a dedicated person in
charge of setting up interviews to secure human resources inTokyo, Nagoya and Osaka, where construction demand is high.

1Q Mid-Career Hiring Numbers

 Continuing to strengthen the hiring
system as we plan to increase thenumber of hires in stages even after
the 2Q

Main Initiatives for FYE2023 1Q
Improving
the retention
rate

No. of 1Q Job Posting Requests

239 people(YoY Change +65 people)

Progress Evaluation
1Q Target Company
Assignment Rate

89.2％



By further deepening sales to target companies that haveabundant construction projects and are expected to have highcontract continuation rates, we could promote new assignments
and push shifting of assignments when the contracts end.

(YoY Change +5.3pts)



For those who meet the conditions, switching employees fromfixed-term employment to permanent employment.
Hiring new employees on the premise of changing to permanent
employment.

1Q permanent Employee Ratio



49.5％

(YoY Change +26.7pts)©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

 Expanded assignments to target
companies, including major generalcontractors
 The number of those resigning
decreased due to the increase in both
the ratio of employees assigned totarget companies, and the ratio ofindefinite-term employees
 Promoting efforts to further improve
the retention rate even after 2Q

7

The major initiatives in construction technician dispatching (1/4 page):
We have implemented three main initiatives: strengthening sales abilities, increasing the number
hired, and improving the retention rate. To start with the conclusion, we believe that each of ourmeasures has been successful so far, and we are steadily achieving results.

7

Major Initiatives in Construction Technician Dispatching Business
Progress Evaluation

Main Initiatives for FYE2023 1Q
Strengthening
sales abilities



Expanding the amount of activity for sales representatives bymanaging sales process KPIs.



Boosting sales personnel at branches in Tokyo, Nagoya and Osaka
where construction demand is high.

Main Initiatives for FYE2023 1Q

Expandingthe number
hired

6,172
(YoY Change +214.6%)

 Achieved a certain result in raising thesales volume through sales reform
efforts

Progress Evaluation
1Q Mid-Career Hiring Costs

By increasing the number of hires and raising the internal
standard for hiring costs per person, mid-career hiring costs
increases 2.3 times from the previous fiscal year.
Expanding the amount of activity for recruiters by managing
recruitment process KPIs in order to deal with the increase in thenumber of interviews with applicants.

89 million yen 1Q hiring costs are slightly below the
Company’s internal plan(YoY Change +130.1%)

 The number of 1Q mid-career hires isin line with the Company’s internalplan

Strengthening the hiring system. In addition to increasing thenumber of hiring managers, shortening the lead time fromapplications to interviews by assigning a dedicated person in
charge of setting up interviews to secure human resources inTokyo, Nagoya and Osaka, where construction demand is high.

1Q Mid-Career Hiring Numbers

 Continuing to strengthen the hiring
system as we plan to increase thenumber of hires in stages even after
the 2Q

Main Initiatives for FYE2023 1Q
Improving
the retention
rate

No. of 1Q Job Posting Requests

239 people(YoY Change +65 people)

Progress Evaluation
1Q Target Company
Assignment Rate

89.2％



By further deepening sales to target companies that haveabundant construction projects and are expected to have highcontract continuation rates, we could promote new assignments
and push shifting of assignments when the contracts end.

(YoY Change +5.3pts)



For those who meet the conditions, switching employees fromfixed-term employment to permanent employment.
Hiring new employees on the premise of changing to permanent
employment.

1Q permanent Employee Ratio



49.5％

(YoY Change +26.7pts)©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

 Expanded assignments to target
companies, including major generalcontractors
 The number of those resigning
decreased due to the increase in both
the ratio of employees assigned totarget companies, and the ratio ofindefinite-term employees
 Promoting efforts to further improve
the retention rate even after 2Q

8

The major initiatives in construction technician dispatching (2/4 page):
First, regarding the strengthening of sales abilities, through KPI management of the sales process,we have greatly expanded the activity of the sales representatives. In addition, we expanded sales
personnel to branches in Tokyo, Nagoya, and Osaka, where construction demand is high.
To maximize the results, we started to focus on selected target companies. To put it simply, we are
striving to significantly expand the number of projects by engaging in in-depth sales to major
companies such as super general contractors. As a result, the number of job posting requests inthe first quarter was 6,172, an increase of 214.6% YoY, and we succeeded in getting
approximately three times as many deals. We believe that our sales reform efforts have achieved
a certain level of success in boosting our sales volume.

8

Major Initiatives in Construction Technician Dispatching Business
Progress Evaluation

Main Initiatives for FYE2023 1Q
Strengthening
sales abilities



Expanding the amount of activity for sales representatives bymanaging sales process KPIs.



Boosting sales personnel at branches in Tokyo, Nagoya and Osaka
where construction demand is high.

Main Initiatives for FYE2023 1Q

Expandingthe number
hired

6,172
(YoY Change +214.6%)

 Achieved a certain result in raising thesales volume through sales reform
efforts

Progress Evaluation
1Q Mid-Career Hiring Costs

By increasing the number of hires and raising the internal
standard for hiring costs per person, mid-career hiring costs
increases 2.3 times from the previous fiscal year.
Expanding the amount of activity for recruiters by managing
recruitment process KPIs in order to deal with the increase in thenumber of interviews with applicants.

89 million yen 1Q hiring costs are slightly below the
Company’s internal plan(YoY Change +130.1%)

 The number of 1Q mid-career hires isin line with the Company’s internalplan

Strengthening the hiring system. In addition to increasing thenumber of hiring managers, shortening the lead time fromapplications to interviews by assigning a dedicated person in
charge of setting up interviews to secure human resources inTokyo, Nagoya and Osaka, where construction demand is high.

1Q Mid-Career Hiring Numbers

 Continuing to strengthen the hiring
system as we plan to increase thenumber of hires in stages even after
the 2Q

Main Initiatives for FYE2023 1Q
Improving
the retention
rate

No. of 1Q Job Posting Requests

239 people(YoY Change +65 people)

Progress Evaluation
1Q Target Company
Assignment Rate

89.2％



By further deepening sales to target companies that haveabundant construction projects and are expected to have highcontract continuation rates, we could promote new assignments
and push shifting of assignments when the contracts end.

(YoY Change +5.3pts)



For those who meet the conditions, switching employees fromfixed-term employment to permanent employment.
Hiring new employees on the premise of changing to permanent
employment.

1Q permanent Employee Ratio



49.5％

(YoY Change +26.7pts)©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

 Expanded assignments to target
companies, including major generalcontractors
 The number of those resigning
decreased due to the increase in both
the ratio of employees assigned totarget companies, and the ratio ofindefinite-term employees
 Promoting efforts to further improve
the retention rate even after 2Q

9The major initiatives in construction technician dispatching (3/4 page):
Second, regarding the major initiatives of the recruitment reform, we increased the number ofhires, raised the hiring cost per technical employee, and increased mid-career hiring costs by 2.3
times from the previous fiscal year. In addition, we are strengthening KPI management in thesame way as the sales reform. We visualized the recruitment process and increased the amountof activity for each recruiter in order to deal with the increase in the number of interviews withapplicants.
In addition, we are increasing the number of hiring managers in order to strengthen our recruiting
system. We have assigned a dedicated person in charge of setting up interviews to shorten thelead time from applications to interviews in Tokyo, Nagoya and Osaka brunches, whereconstruction demand is high.
Evaluating the progress, we used 89 million yen for mid-career recruitment expenses in the firstquarter, an increase of 130.1% YoY. As a result, the number of mid-career hires in the first quarterwas 239, a YoY increase of 65. On the other hand, hiring expenses for the first quarter wereslightly below our internal plan. The number of mid-career hires is in line with the internal plan. We
will continue to strengthen our hiring system as we plan to gradually increase the number of hires
in stages from the second quarter onwards.

9

Major Initiatives in Construction Technician Dispatching Business
Progress Evaluation

Main Initiatives for FYE2023 1Q
Strengthening
sales abilities



Expanding the amount of activity for sales representatives bymanaging sales process KPIs.



Boosting sales personnel at branches in Tokyo, Nagoya and Osaka
where construction demand is high.

Main Initiatives for FYE2023 1Q

Expandingthe number
hired

6,172
(YoY Change +214.6%)

 Achieved a certain result in raising thesales volume through sales reform
efforts

Progress Evaluation
1Q Mid-Career Hiring Costs

By increasing the number of hires and raising the internal
standard for hiring costs per person, mid-career hiring costs
increases 2.3 times from the previous fiscal year.
Expanding the amount of activity for recruiters by managing
recruitment process KPIs in order to deal with the increase in thenumber of interviews with applicants.

89 million yen 1Q hiring costs are slightly below the
Company’s internal plan(YoY Change +130.1%)

 The number of 1Q mid-career hires isin line with the Company’s internalplan

Strengthening the hiring system. In addition to increasing thenumber of hiring managers, shortening the lead time fromapplications to interviews by assigning a dedicated person in
charge of setting up interviews to secure human resources inTokyo, Nagoya and Osaka, where construction demand is high.

1Q Mid-Career Hiring Numbers

 Continuing to strengthen the hiring
system as we plan to increase thenumber of hires in stages even after
the 2Q

Main Initiatives for FYE2023 1Q
Improving
the retention
rate

No. of 1Q Job Posting Requests

239 people(YoY Change +65 people)

Progress Evaluation
1Q Target Company
Assignment Rate

89.2％



By further deepening sales to target companies that haveabundant construction projects and are expected to have highcontract continuation rates, we could promote new assignments
and push shifting of assignments when the contracts end.

(YoY Change +5.3pts)



For those who meet the conditions, switching employees fromfixed-term employment to permanent employment.
Hiring new employees on the premise of changing to permanent
employment.

1Q permanent Employee Ratio



49.5％

(YoY Change +26.7pts)©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

 Expanded assignments to target
companies, including major generalcontractors
 The number of those resigning
decreased due to the increase in both
the ratio of employees assigned totarget companies, and the ratio ofindefinite-term employees
 Promoting efforts to further improve
the retention rate even after 2Q

10

The major initiatives in construction technician dispatching (4/4 page):
Third, as for the major initiatives to improve the retention rate, as explained in the section onstrengthening sales abilities through in-depth sales, we aim to gain shifting assignments whencontracts expire as well as new assignments from target companies with plenty of construction
projects and high contract continuation rates. Besides that, these target companies reduce thepossibilities for technical employees to resign since these companies, such as major generalcontractors, have properly prepared work sites for temporary workers. On the other hand,companies using temporary staffing services for the first time tend to be inadequate in how theyhandle temporary workers. When that happens, it becomes difficult for the dispatched technicalemployees to stay in contract at the site. Therefore, we can improve the retention rate by getting
contracts from target companies with a high contract renewal rate.
In addition, we have made efforts to convert fixed-term employees who meet internal conditions toindefinite-term employment. From this fiscal year, new hires are also being hired on theassumption that they will be converted to indefinite-term employment. This secures theemployees’ job and allows them to stay with our company.
In conclusion, the number of those resigning decreased greatly due to the increase in both theratio of employees assigned to target companies, and the ratio of indefinite-term employees.
Evaluating the progress, the percentage assigned to the target companies is improved to 89.2%,
increasing 5.3 points from the previous fiscal year. Likewise, the percentage of people who areindefinite-term employees is 49.5%, up 26.7 points YoY. From the second quarter onwards, we
aim to further improve the retention rate, promoting each initiative.

10

Summary of Main KPI（Construction Technician Dispatching Business）
Number of Job Posting Requests

Number of Hired and Resigned Technical Employees（people）

8,000

6,172

6,000

YoY

4,000
2,000

＋

1,962

214.6％

0
FYE2022 1Q

400
300
200
100
0
-100
-200
-300
-400
-500

FYE2023 1Q

Retention Rate of Technicians (1Q cumulative)

27.4％

＋

△223

△293
FYE2022 1Q

FYE2023 1Q

Hired total

Turnover total

Turnover total
YoY

-

23.9％

Number of Technicians (Quarter End)（people）

92%

2300

89.7%

90%

4.9pts

+

84.8%

84%

2,187

2200

YoY

88%
86%

Hired total
YoY

293

230

2100

2,020

2000

1,957

YoY

1,995

＋

1900

11.8％

1800
1700

82%
FYE2022 1Q

FYE2023 1Q

FYE2021

FYE2022

FYE2022

FYE2023

4Q

1Q

4Q

1Q

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

11

The summary of the major KPIs (Construction Technician Dispatching Business):
As you can see from the graphs on the slide, each of these measures has been successful, andthe numbers have grown significantly compared to the previous year.
The number of job posting requests increased by 214.6% YoY. As for the number of technicalemployees hired and the number who resigned, 293 people were hired, up 27.4% YoY, and 223
people resigned, down 23.9% YoY. The number of those who resign is on a big downward trend.
The graph at the bottom left of the slide shows the retention rate. As a result of implementing themeasures mentioned earlier and following their progress, the retention rate was 89.7%, anincrease of 4.9 points from the previous fiscal year.
The graph on the bottom right of the slide shows the number of technical employees at the end of
the quarter. The first quarter was 2,187 people, up 11.8% YoY.

11

1. Summary of the Consolidated Financial Results

2. Major Initiatives in Construction Technician Dispatching

3. FYE2023 Financial Forecast

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

1212

FYE2023 Financial Forecast• Net sales are expected to increase by 14.5% from the previous fiscal year with the rise in the number of people assigned, mainly inthe core business of construction technician dispatching.
• In order to overcome the current situation where opportunity loss is occurring with a bottleneck in hiring, we plan to increase hiringcosts 2.5 times from the previous fiscal year, with the aim of securing excellent engineers and technicians who will be the basis of
growth, positioning this fiscal year as a phase to promote upfront investment for business expansion.
• Non-GAAP operating profit is expected to decrease by 27.6% from the previous fiscal year due to an increase in selling andadministration expenses from aggressive investment in recruitment costs.
• In FYE2024, the next fiscal year, we will recover the upfront costs of the current fiscal year and aim for a record high profit underoperating profit due to a V-shaped recovery.

（million of yen）
FYE2022Full-year

FYE2023
Full-year(Forecast)Ratio

YoY Change
Ratio

Pct Change

Amount of Change

Net sales

15,589100.0%

17,854100.0%+14.5%+2,264

Cost of sales

10,74468.9%

12,35469.2%+15.0%+1,609Gross profit

4,844

31.1%

5,500

30.8%

+13.5％+655

SG&A expenses

3,223

20.7%

4,476

25.1％

+38.9％+1,252

Operating profit

1,621

10.4%

1,024

5.7％

- 36.8％- 597

Non-GAAP operating profit*

1,841

11.8%

1,334

7.5％

- 27.6％- 507

Ordinary profit

1,619

10.4%

1,024

5.7％

- 36.8％

- 595

962

6.2％

604

3.4％

- 37.3％- 358¥102.12-¥65.05-- 36.3％¥- 37.07

2,201

-

3,024

-

+37.4%+823

Profit attributable to owners of parent
Earnings per share*
Number of consolidated technicians &engineers (quarter end)**As a profit index to measure essential performance, Non-GAAP operating profit is calculated by adding depreciation, amortization of goodwill and share-based remuneration expenses back to operating profit.
*The number of consolidated technicians & engineers is the number of employees at the end of the fiscal year including IT freelancers in the SES business.

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

13

The consolidated financial forecast for the full FYE2023:
Sales are expected to increase by 14.5% from the previous fiscal year with the rise in the numberof people assigned, mainly in the core business of construction technician dispatching.
In order to overcome the current situation where hiring is a bottleneck, and opportunity loss isoccurring for dispatching, we are positioning this fiscal year as a phase to promote upfront
investment for business expansion. We plan to increase hiring costs 2.5 times from the previous
fiscal year, with the aim of securing excellent engineers and technicians who will be the basis of
growth, including new graduates.
Non-GAAP operating profit is expected to decrease by 27.6% from the previous fiscal year due toan increase in selling and administration expenses from aggressive investment in recruitment
costs. However, we do not view this decline in profits as a negative as the reason is that we haveraised the internal standard for hiring per head in order to secure the human resources that are
indispensable for expanding our business performance. We have made these forecasts for thecurrent fiscal year to achieve the performance targets set out in the medium-term management
plan aiming FYE2027. By doing so, we will fully recover the upfront expenses for the current fiscal
year for FYE2024, and aim for a V-shaped recovery that will result in record high operating profit.
As for the full FYE2023, we are forecasting net sales of 17,854 million yen, up 14.5% YoY, and
non-GAAP operating profit of 1,334 million yen, down 27.6% YoY.

13

Returning Shareholders[Basic Policy]
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. Dividends will not be reduced 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.
80 Based on the dividend policy, we are maintaining the
75 annual dividend at ¥40.0 for FYE2023

61.5%

60.0%

70 The dividend payout ratio is expected to be 61.5%
65
60

35.1%

55
45

20.2%

18.5%

35

¥30.0

30

¥21.0

25
15
10
5

40.0%

¥15.0
15.0

1.0

30.0%

¥37.5

40

20

50.0%

39.2%

26.1%

50

20.0

70.0%

¥40.0

¥40.0

30.0

30.0

2.5

20.0%
10.0%

25.0

0.0%
-10.0%

20.0
10.0

10.0

10.0

10.0

FYE2020

FYE2021

FYE2022

FYE2023(forecast)0-20.0%-30.0%

FYE2018

FYE2019

Ordinary dividend (interim)

Ordinary dividend (year-end)

Commemorative dividend (year-end)

Dividend payout ratio (%)*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.
©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

14

Shareholder returns:
Dividends are the basis for shareholder returns, which we consider to be one of the importantmanagement issues, and our basic policy is to pay stable dividends. Dividends will not be reduced
during the period covered by the medium-term management plan "COPRO Group Build the Future2027" (from FYE2023 to FYE2027), depending on the profit growth achieved through aggressive
investment.
The forecast for FYE2023 is shown on the right side of the graph at the bottom of the slide. Basedon our dividend policy for FYE2023, we plan to maintain an annual dividend of 40 yen. The
dividend payout ratio is forecast to be 61.5%, with an interim dividend of 10 yen per share, and a
year-end dividend of 30 yen per share, for an annual dividend of 40 yen.
That concludes the explanation about the financial results for the first quarter of FYE2023.
Please have a look at the reference materials when you have time.

14

1. Summary of the Consolidated Financial Results

2. Major Initiatives in Construction Technician Dispatching

3. FYE2023 Financial Forecast

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

15

15

Construction Technician Dispatching: Number of Technicians and Occupancy Rate
• The number of technicians at the end of this 1Q was 2,187 (up 230 people from the end of the previous 1Q). In addition to a netincrease due to a rise in the number of hires and a decrease in the number of those resigning, the worker dispatching business of
Hucoss Co., Ltd. was taken over on April 1, 2022, which 122 technicians were transferred.
• The occupancy rate at the end of this 1Q was 96.6% (down 0.8pts from the end of the previous 1Q).

（people）
2,500

100%

98.1%

97.7%

2,400

97.8%

97.4%

97.0%

97.3%

96.7%

96.6% 98%

95.8%

2,300
94.4%

1Q average 2,164
people

2,200
2,100

93%
1Q average 1,966
people

2,000

90%
2,187

1,900
1,800

95%

1,984

2,044

2,002

2,054

2,020

1,957

1,978

2,010

88%

1,995

1,700

85%
2020

2020

2020

2020

2021

2021

2021

2021

2022

2022

Mar.

June

Sep.

Dec.

Mar.

June

Sep.

Dec.

Mar.

June

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

Occupancy rate

16

16

Construction Technician Dispatching: Hiring and Resigning and Retention Rate
• The number of hires reached a record high on a quarterly basis.
• Of the number of hires, the number of mid-career hires was 239 people, an increase of 65 people from the previous quarter, and anincrease of 37.4%. In addition to the significant increase in the number of applications due to the aggressive investment in hiringcosts, we are strengthening our efforts such as shortening the lead time from applications to interviews, and increasing the numberof interviews done.
• The 1Q retention rate of technicians was 89.7%, an improvement of 4.9pts from the previous quarter. The number of those
resigning decreased due to the success of further sales to exsiting clients, and the increase in the ratio of assignments to target
companies such as major general contractors.

Recruitment / Turnover（people）
FYE2022
1Q

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

2Q
230

FYE2023

3Q
208

4Q
213

Full Year
183

1Q

834

293

Full Year(forecast)
1,501

56

0

0

0

56

54

84

174
293
24
269
- 63
0
1,957

208
187
25
162
+21
0
1,978

213
181
21
160
+32
0
2,010

183
198
24
174
- 15
0
1,995

778
859
94
765
- 25
0
1,995

239
223
40
183
+70
+122
2,187

1,417
885
＋616
+122
2,733

Retention Rate
FYE2022
1Q

2Q

FYE2023
3Q

4Q

1Q

Retention rate (fiscal year accumulative total)

84.8%

79.3%

74.6%

69.4%

89.7%

Retention rate (LTM)

68.0%

69.5%

69.2%

69.4%

71.8％

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

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

17

17

Mechanical Design and Development Engineer Dispatching and Contracting:Number of Engineers and Occupancy Rate
• The number of hires has increased in line with the development of the in-house system that has been expanded since the previous
fiscal year. As a result, the number of engineers has steadily increased.
• The occupancy rate remains at a high level as a whole, while more inexperienced employees, who goes through in-house training
instead of working, have been hired.

（people）
130
125

96.5%

96.3%

97.2%

98.2%

98.1%

99.1%

100%

98.3%

96.7% 98%

96.4%

96%
120

94%
92%

115

90%
110
105

122
113
109

100

109

110

111

108

88%
86%

116

84%

106

82%

95

80%
2020

2020

2020

2021

2021

2021

2021

2022

2022

May

Aug.

Nov.

Feb.

May

Aug.

Nov.

Mar.

June

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

Occupancy rate18

18

Mechanical Design and Development Engineer Dispatching and Contracting:
Hiring and Resigning and Retention Rate
• The hiring of experienced personnel has continued to steadily realized, with a focus on engiineers from a manufacturering industry.
In addition, 14 people were hired this 1Q by promoting the hiring of inexperienced personnel.
• The number of those resigning has increased slightly due to foreign employees resigning as they return to their country.

Recruitment / Turnover（people）
FYE2022
1Q

Hired total

2Q

FYE2023
4Q*

3Q

Full Year

1Q

Full Year(forecast)

2

3

15

20

14

New graduated

0

0

0

0

1

1

Mid-career

2

3

15

20

13

84

Turnover total

85

5

5

5

15

8

23

Permanent engineers

5*

4

3

12

7

-

Fixed-term engineers

0

1

2

3

1

-

3

-2

+10

+5

+6

+62

108

106

116

116

122

178

Net change
Number of engineers*Includes three people who changed from technical employees to management employees.
*For the 4Q of FYE2022, due to the change in the month that the fiscal year ends, the results for the four months from December 2021 to March 2022 are included.

Retention Rate
FYE2022
1Q (reference※)

2Q

FYE2023
3Q

4Q

1Q

Retention rate (fiscal year accumulative total)

100.0%

95.4%

91.7%

88.9%

93.1%

Retention rate (LTM)

92.9%

92.7%

90.8%

88.9%

84.7%

*Retention rate (Fiscal year accumulative total) = Among the technical employees who were registered at the end of the previous fourth quarter, the percentage who were still registered at the end of therelevant quarter.
*Retention rate (LTM) = Among the technical employees who were registered at the end of the quarter one year ago, the percentage who were still registered at the end of the same quarter one year later.
*ATMOS Co., Ltd. has been consolidated since June 2021 due to M&A. Therefore, the result for 1Q of FYE2022 is provided for reference only.

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

19

19

SES: Number of Engineers Working and Number of New IT Freelance Registrants• Although the number of employees working saw a net decrease with many projects ending at the March close of the fiscal year, it
has increased steadily since May.
• Regarding the number of new registrants, it has been improving in gaining applicants by posting paid media advertisements inaddition to the company's recruiting site "Happy Engineer".

Number of People Working

Number of IT Freelance Registrants(People)(People)

95

300
90

90

Number of New Registrants

Cumulative Number
of Registrants

7,443
250

250

7,000
213

87
85

85

8,000

6,000

200

5,000

150

4,000

80
100
75

3,000
70

2,000

50

1,000

70
2021

2022

2022

Dec.

Mar.

June

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

0
FYE2022 3Q

FYE2022 4Q

FYE2023 1Q

0
FYE2023 1Q

20

20

Disclaimer and Forward-Looking Statements

 This document has been prepared by COPRO-HOLDINGS. Co., Ltd. (the “Company”) to assist
investors in understanding the current status of Company.
 The information contained in this document is based on economic, social, and other conditions
generally recognized as of the date of publication and on certain assumptions deemed reasonable
by Company. However, the information may change without notice due to changes in the businessenvironment or other factors.
 Materials and information provided in this announcement include so-called "forward-looking
statements”. These forward-looking statements are based on current expectations, forecasts andassumptions that involve risks and uncertainties that could cause actual results to differ materiallyfrom these statements.
 These risks and uncertainties include general industry, market conditions, general domestic andinternational economic conditions such as interest rate and currency exchange rate fluctuations.
 Company undertakes no obligation to update or revise any forward-looking statements containedin this document, whether as a result of new information or future events.

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

21

21