Fiscal Year Ending March 31, 2023

Financial Resultsfor 1st Half
November 14, 2022

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

Good evening, everyone. I am Kiyokawa, president and representative director of
COPRO-HOLDINGS. Co., Ltd. Thank you very much for taking time out of your busy
schedules to gather with us today. I would now like to give an explanation about thefinancial results for the second quarter of FYE2023.

0Table of Contents

1. Summary of the Consolidated Financial Results
2. Revision of Full‐year Financial Forecast for FYE2023
3. Major Initiatives in Construction Technician Dispatching
4. Appendix©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

1

Table of contents:
In terms of how things will proceed today, due to time constraints, I will explain things in
the following order. To start, the first half results, then the revised full-year forecast, andafter that our major initiatives in the dispatching business of construction technicians. For
other information, please refer to the reference materials when you have the time.

11. Summary of the Consolidated Financial Results
2. Revision of Full‐year Financial Forecast for FYE2023
3. Major Initiatives in Construction Technician Dispatching
4. Appendix©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

22

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

FYE2022

FYE2023

YoY Change

Versus Forecast

Pct Change

Amount of
ChangePct Change

Amount of
Change100.0％+17.1％+1,268

+6.5％

+526

6,086

70.2％

+17.8％

+918

+7.5％

+424

2,583

29.8％

+15.7％

+349

+4.1％

+101

2,193

2,113

24.4％

+32.0％

+512

△3.6％

‐79

632

289

469

5.4％

‐25.7％‐162+62.2％

+180

721

427

613

7.1％

‐15.0％‐108+43.6％+186

Ordinary profit

630

290

472

5.4％

‐25.2％‐158+62.7％+181

Profit attributable to owners of parent

328

158

280

3.2％

‐14.6％‐47+77.2％+122

Number of consolidated technicians &engineers (quarter end)*

2,086

2,538

2,574

－

+23.4%

+488

+1.4％

+36

1H Results

1H Forecast

1H Results

Net sales

7,402

8,144

8,670

Cost of sales

5,168

5,662

Gross profit

2,233

2,482

SG&A expenses

1,601

Operating profit
Non‐GAAP operating profit*

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

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

3

Consolidated financial highlights for 1st Half of FYE2023:
In the 1st Half, both sales and profits finished better than expected at each stage.
Compared to the budget, mainly in our core business of dispatching construction
technicians, in addition to curtailing the number of people resigning, the recruitment plan
was largely in line with the plan, and the number of people working exceeded the plan.
As a result, profits at each stage greatly exceeded the forecast, mainly due to the higher
sales.
With regards to the results for the first half of FYE2023, sales were ¥8.67 billion, an
increase of 17.1% YoY. Compared to the forecast, it was an increase of ¥526 million or
6.5% higher.
Non-GAAP operating profit was ¥613 million, down 15% YoY, while it was 43.6% higher
than the forecast or an increase of ¥186 million. Our full-year plan for the current fiscal
year is for an increase in sales and a decrease in profit.
As previously announced, we are investing heavily in recruiting costs as an upfront
investment this fiscal year. At the time of the initial forecast, we planned for a decline inprofits, but sales in the first half were significantly higher than expected, therefore theextent of the decline in profits has improved significantly.

3

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

（million of yen）

（people）

4,500
4,038
4,000
3,606
3,500

2,044

3,664

2,002

3,796

2,020

4,249

2,394
2,203

3,000

2,574

3,846

3,768
3,555

2,054

4,148

4,421

2,500

2,201

2,086
1,957

2,000

3,000

2,500

1,500
1Q

2Q

Consolidated net sales

3,606

3,664

Number of consolidated
technicians & engineers(quarter end)

2,044

2,002

3Q

4Q

1Q

2Q

3,796

3,768

3,555

3,846

2,054

2,020

1,957

2,086

FYE2021

3Q

4Q

1Q

4,038

4,148

4,249

4,421

2,203

2,201

2,394

2,574

FYE20222Q

FYE2023

Consolidated net sales
Number of consolidated technicians & engineers (quarter end)
©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

4

Quarterly Consolidated Financial Results:
Next, the quarterly consolidated financial results. With the increase in the number oftechnical employees, sales for the current second quarter reached a record high on aquarterly basis.
As you can see, it's been growing steadily, but we're not satisfied with this growth. The
growth curve should be even bigger. Thus, we are currently in the process of resolving
underlying issues and promoting internal reforms.

4

1. Summary of the Consolidated Financial Results
2. Revision of Full‐year Financial Forecast for FYE2023
3. Major Initiatives in Construction Technician Dispatching
4. Appendix©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

55Revision of Full‐year Financial Forecast for FYE2023• For the full fiscal year earnings forecast, while strong demand is expected from the 3Q onwards, in light of the impact
on securing human resources from the tightening of labor market conditions, and the economic impact from about
the resurgence of COVID‐19, we have revised upward the portion exceeding the forecast for the first half, and left theinitial forecast for the second half unchanged.
• Aiming for the goal of achieving record net sales and profit in FYE2024 next year, we will prioritize top‐line growth in
this fiscal year and continue upfront investment such as recruiting costs.
（million of yen）
FYE2022
Full‐year

FYE2023
Full‐year

Full‐year(initial forecast) (revised forecast)Versus Initial Forecast

Ratio

Pct Change

Amount of
ChangeYoY Change
Pct Change

Amount of
ChangeNet sales

15,58917,854

18,380100.0％

+2.9％

+526

+17.9％+2,791

Cost of sales

10,744

12,354

12,779

69.5％

+3.4％

+424

+18.9％+2,034Gross profit

4,844

5,500

5,601

30.5％

+1.8％

+101

+15.6％+756

SG&A expenses

3,223

4,476

4,397

23.9％

‐1.8％

‐79

+36.4％+1,173Operating profit

1,621

1,024

1,204

6.6％

+17.6％+180‐25.7％‐417

Non‐GAAP operating profit*

1,841

1,334

1,521

8.3％

+13.9％+186‐17.4％‐320

Ordinary profit

1,619

1,024

1,206

6.6％

+17.8％+181‐25.5％

‐412

962

604

727

4.0％

+20.2％+122‐24.5％‐235

Earnings per share

102.12 yen

65.05 yen

78.29 yen－－

+13.24 yen－‐23.83 yen

Dividends per share

40.0 yen

40.0 yen

40.0 yen

－

－

－

－

－

2,201

3,024

3,024

－

－

－

+37.4％+823

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

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

6

Revision of Full-year Financial Forecast for FYE2023:
While strong demand is expected from the third quarter onwards, in light of the impact on
securing human resources from the tightening of labor market conditions, and theeconomic impact from continued concern about the resurgence of the novel coronavirus
infection, we are revising upwards the full-year forecast for the portion exceeding theforecast in the first half. For the second half, we have left the initial forecast unchanged.
Aiming to achieve record-high sales and profits in the next fiscal year of FYE2024, we
will prioritize sales growth in the current fiscal year and continue to make upfront
investments such as in recruiting costs.
Next, I will explain a little about the figures that have been revised upwards.
Consolidated sales have been revised upward to ¥18.38 billion, up 2.9% from the initial
forecast. Sales are expected to increase by 17.9% YoY. Non-GAAP operating profit isexpected to be ¥1.521 billion, an increase of 13.9% from the initial forecast and adecrease of 17.4% YoY.

6

1. Summary of the Consolidated Financial Results
2. Revision of Full‐year Financial Forecast for FYE2023
3. Major Initiatives in Construction Technician Dispatching
4. Appendix©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

77

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

Main Initiatives for FYE2023 and Progress Evaluation


FYE2022



FYE2023→

160→
Third Quarter recruitment
made a good start

140

138

126

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

1H Hiring Costs
per Technician

450 thousand yen

120

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

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

（up 108.3％ YoY）

102

96

100

85

80

80
65
60

53

81
72

70

63

1H Mid‐Career
Hiring Costs（up 201.0％ YoY）

57

56

248 million yen

→

→

△
×
×

40
1H Hired Total of
Mid‐career Technicians20552 people

0
Apr.

May

June

Jul.

Aug.

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

Sep.

Oct.

（up 170 people andup 44.5% YoY）



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

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

→

The number of recruits in October was 138, a
good start to Third Quarter toward achieving thefull‐year target△
8

Major Initiatives in Construction Technician Dispatching (1) Expanding Recruitment (1/5
page):
I would like to explain our main initiatives in our core business of dispatching
construction technicians. First, we are working to expand the number of recruits.
The left side of the slide is a graph of the number of mid-career technicians recruited.
The dark blue bar graph shows FYE2023. Even looking at October, the first month of thethird quarter, we recruited 138 people during the month, which was a good start.

8

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

Main Initiatives for FYE2023 and Progress Evaluation


FYE2022



FYE2023→

160→
Third Quarter recruitment
made a good start

140

138
126

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

1H Hiring Costs
per Technician

450 thousand yen

120

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

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

（up 108.3％ YoY）

102

96

100

85

80

80

60

81
72

70

65

63
53

1H Mid‐Career
Hiring Costs（up 201.0％ YoY）

57

56

248 million yen

→

→

△
×
×

40
1H Hired Total of
Mid‐career Technicians20552 people

0
Apr.

May

June

Jul.

Aug.

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

Sep.

Oct.

（up 170 people andup 44.5% YoY）



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

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

→

The number of recruits in October was 138, a
good start to Third Quarter toward achieving thefull‐year target△
9

Major Initiatives in Construction Technician Dispatching (1) Expanding Recruitment (2/5
page):
I would like to explain our main initiatives and progress for this fiscal year. We are raising
the basic activity level through benchmark management and standardization of the hiring
process. We also appointed staff in charge of setting up interviews in order to secure
human resources in Tokyo, Nagoya and Osaka where construction demand is high, in
addition to increasing the number of people in charge of recruitment.
As a result, while both the number of applications and the number employed haveincreased significantly, the decline in the applicant-to-hire ratio has become an issue.
We are implementing operational reforms to improve the applicant-to-hire ratio in thesecond half. The reason why we internally gave it a triangle mark for “so-so” is that, while
our strategy has been successful, and the number of recruits has increased significantly,
as explained earlier, it is because the applicant-to-hire ratio is on a downward trend. We
would like to proceed with further reforms, leading to significant improvements in thenumber of recruits and the applicant-to-hire ratio.

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

Main Initiatives for FYE2023 and Progress Evaluation


FYE2022



FYE2023→

160
Third Quarter recruitment
made a good start

140

→

138

126

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

1H Hiring Costs
per Technician

450 thousand yen

120

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

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

（up 108.3％ YoY）

102

96

100

85

80

80
65
60

53

81
72

70

63

1H Mid‐Career
Hiring Costs（up 201.0％ YoY）

57

56

248 million yen

→

→

△
×
×

40
1H Hired Total of
Mid‐career Technicians20552 people

0
Apr.

May

June

Jul.

Aug.

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

Sep.

Oct.

（up 170 people andup 44.5% YoY）



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

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

→

The number of recruits in October was 138, a
good start to Third Quarter toward achieving thefull‐year target△
10

Major Initiatives in Construction Technician Dispatching (1) Expanding Recruitment (3/5page):The recruiting costs per mid-career technical employee is the cost of employing one midcareer professional. Recruiting costs per mid-career technical employee were ¥450,000,
up 108.3% YoY. We have focused on securing excellent human resources by raising ourinternal standards for the recruiting costs per technical employee.
Due to the decline in the applicant-to-hire ratio, our internal evaluation is "X" because therecruiting costs per technical employee increased more than expected. The reason isthat we had set a target value of ¥322,000 for the full-year recruiting costs per technicalemployee.
While revising the recruiting process, on the premise of employing better humanresources, we have revised the direction of recruiting human resources for the portion
spent, even if it meant slightly lowering the perspective of the recruiting staff. We willclosely monitor the recruitment process on a daily basis so that we can achieve our fullyear target of ¥322,000 for recruiting costs per technical employee.

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

Main Initiatives for FYE2023 and Progress Evaluation


FYE2022



FYE2023→

160
Third Quarter recruitment
made a good start

140

→

138

126

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

1H Hiring Costs
per Technician

450 thousand yen

120

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

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

（up 108.3％ YoY）

102

96

100

85

80

80
65
60

53

81
72

70

63

1H Mid‐Career
Hiring Costs（up 201.0％ YoY）

57

56

248 million yen

→

→

△
×
×

40
1H Hired Total of
Mid‐career Technicians20552 people

0
Apr.

May

June

Jul.

Aug.

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

Sep.

Oct.

（up 170 people andup 44.5% YoY）



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

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

→

The number of recruits in October was 138, a
good start to Third Quarter toward achieving thefull‐year target△
11

Major Initiatives in Construction Technician Dispatching (1) Expanding Recruitment (4/5
page):
With regards to recruiting costs for mid-career professionals, in the first half it was ¥248
million, with spending in the budget up 201% YoY. This is the main reason why profits
are forecast to decrease for the full-year plan this fiscal year. Recruiting costs for midcareer professionals are planned to be ¥456 million for the full year, which isapproximately double YoY. Recruiting costs for mid-career professionals in the first halfof the fiscal year are in excess of our internal budget.
In the second half of the fiscal year, we will monitor and check the recruiting costs pertechnical employee, and we would like to continue our thorough efforts to expand
recruiting while firmly controlling costs. In our internal plan, we have invested more orless as planned in terms of costs, but the recruiting costs per technical employee slightly
exceeded our internal target, so we have given an "X" for our in-house evaluation.

11

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

Main Initiatives for FYE2023 and Progress Evaluation


FYE2022



FYE2023→

160
Third Quarter recruitment
made a good start

140

→

138

126

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

1H Hiring Costs
per Technician

450 thousand yen

120

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

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

（up 108.3％ YoY）

102

96

100

85

80

80
65
60

53

81
72

70

63

1H Mid‐Career
Hiring Costs（up 201.0％ YoY）

57

56

248 million yen

→

→

△
×
×

40
1H Hired Total of
Mid‐career Technicians20552 people

0
Apr.

May

June

Jul.

Aug.

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

Sep.

Oct.

（up 170 people andup 44.5% YoY）



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

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

→

The number of recruits in October was 138, a
good start to Third Quarter toward achieving thefull‐year target△
12

Major Initiatives in Construction Technician Dispatching (1) Expanding Recruitment (5/5page):
As for the first-half results, the number of mid-career professionals employed were 552,
an increase of 170 people YoY, or up 44.5%. We plan to recruit 1,417 mid-career
professionals for the full fiscal year, an increase of 639 people YoY. In the first half, weare progressing largely according to plan, and we believe that we can give a passing
score in terms of securing human resources.
While we are off to a good start in the third quarter toward achieving our full-year
recruiting plan of 1,417 people, from the perspective of aiming high, as an overall internal
evaluation we gave it a triangle mark for “so-so”.

12

Major Initiatives in Construction Technician Dispatching (2): Improving the Retention Rate
Retention Rate
(fiscal year accumulative total)
100%

Main Initiatives for FYE2023 and Progress Evaluation

1H Target Company
Assignment Rate

87.8％

（up 3.5pts YoY）

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

◎

90%

84.2%
80%

79.3%

+4.9pts

1H Contract Renewal Rate

 Controlling changes in the work
environment through long‐term and stableassignment to the same company（up 4.7pts YoY）

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

83.0％

1H Permanent Employee
Ratio

50.0％

70%

（up 28.4pts YoY）

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

◎
〇

60%
1H Turnover Totalof Technicians

381people

50%
FYE2022 1H©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

FYE2023 1H（down 99 people YoY）

 While giving impetus according to the yearof registering, enhancing the trust visits totechnicians→ Through detailed interviews, the number of
employees who resigned decreased despite
the increase in the overall number of active
employees◎
13

Major Initiatives in Construction Technician Dispatching (2) Improving the Retention Rate
(1/5 page):
The second major initiative is improving the retention rate, which is one of our important
KPIs. In the first half of FYE2022 the retention rate was 79.3%. In the first half of
FYE2023 it was 84.2%, an increase of 4.9 points YoY.
Regarding the main initiatives for the current fiscal year and the internal evaluation of ourprogress, overall, the measures and strategies we are currently working on are startingto yield results in a very good way. I will explain them one by one.

13

Major Initiatives in Construction Technician Dispatching (2): Improving the Retention Rate
Retention Rate
(fiscal year accumulative total)
100%

Main Initiatives for FYE2023 and Progress Evaluation

1H Target Company
Assignment Rate

87.8％

（up 3.5pts YoY）

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

◎

90%

84.2%
80%

79.3%

+4.9pts

1H Contract Renewal Rate

 Controlling changes in the work
environment through long‐term and stableassignment to the same company（up 4.7pts YoY）

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

83.0％

1H Permanent Employee
Ratio

50.0％

70%

（up 28.4pts YoY）

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

◎
〇

60%
1H Turnover Totalof Technicians

381people

50%
FYE2022 1H©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

FYE2023 1H（down 99 people YoY）

 While giving impetus according to the yearof registering, enhancing the trust visits totechnicians→ Through detailed interviews, the number of
employees who resigned decreased despite
the increase in the overall number of active
employees◎
14

Major Initiatives in Construction Technician Dispatching (2) Improving the Retention Rate
(2/5 page):
In order to increase the retention rate, we are working to increase the ratio of
assignments to our target companies. The percentage assigned to the target companies
is 87.8%, which is a 3.5-point increase YoY.
In transactions with major companies such as the five super general contractors andsemi-major companies, which are our target companies, we are working to make thepipe thicker. Conversely, this means that we will not sign new contracts with smaller
companies that have not much used dispatched technical employees.
Super general contractors and major companies are very accustomed to using such
temporary staff, with working environments that are well maintained, and working hours
that are well managed. By assigning technical employees to such companies, theburden on them is reduced, which will lead to an increase in the retention rate. We have
put a lot of effort into this, and we're seeing results, so we've given a double circle mark“ ” for very good as our internal evaluation.

14

Major Initiatives in Construction Technician Dispatching (2): Improving the Retention Rate
Retention Rate
(fiscal year accumulative total)
100%

Main Initiatives for FYE2023 and Progress Evaluation

1H Target Company
Assignment Rate

87.8％

（up 3.5pts YoY）

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

◎

90%

84.2%
80%

79.3%

+4.9pts

1H Contract Renewal Rate

 Controlling changes in the work
environment through long‐term and stableassignment to the same company（up 4.7pts YoY）

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

83.0％

1H Permanent Employee
Ratio

50.0％

70%

（up 28.4pts YoY）

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

◎
〇

60%
1H Turnover Totalof Technicians

381people

50%
FYE2022 1H©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

FYE2023 1H（down 99 people YoY）

 While giving impetus according to the yearof registering, enhancing the trust visits totechnicians→ Through detailed interviews, the number of
employees who resigned decreased despite
the increase in the overall number of active
employees◎
15

Major Initiatives in Construction Technician Dispatching (2) Improving the Retention Rate
(3/5 page):
The contract renewal rate is 83.0%, an increase of 4.7 points YoY. When the dispatch
contract period ends, the man-hours of the sales staff increases while they search for the
next company or worksite to assign people to.
As for the contract renewal rate, sales representatives visit companies repeatedly tobuild deeper relationships and relationships of trust with customers, and it is an indicator
for when, at the end of the technical employee's contract period, the contract is extended
as is with the same company instead of the company canceling.
Efforts to boost the contract renewal rate are paying off with increased productivity, or
sales staff can secure time to pick up new projects. We can control changes in the work
environment through long-term and stable assignment to the same company The
contract renewal rate is improving as the ratio of assignments to target companies isincreased. We have also given this a double circle mark “ ” for very good.

15

Major Initiatives in Construction Technician Dispatching (2): Improving the Retention Rate
Retention Rate
(fiscal year accumulative total)
100%

Main Initiatives for FYE2023 and Progress Evaluation

1H Target Company
Assignment Rate

87.8％

（up 3.5pts YoY）

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

◎

90%

84.2%
80%

79.3%

+4.9pts

1H Contract Renewal Rate

 Controlling changes in the work
environment through long‐term and stableassignment to the same company（up 4.7pts YoY）

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

83.0％

1H Permanent Employee
Ratio

50.0％

70%

（up 28.4pts YoY）

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

◎
〇

60%
1H Turnover Totalof Technicians

381people

50%
FYE2022 1H©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

FYE2023 1H（down 99 people YoY）

 While giving impetus according to the yearof registering, enhancing the trust visits totechnicians→ Through detailed interviews, the number of
employees who resigned decreased despite
the increase in the overall number of active
employees◎
16

Major Initiatives in Construction Technician Dispatching (1) Expanding Recruitment (4/5
page):
I would like to talk about measures and strategies to increase the ratio of permanently
employed technical staff. Currently it is 50.0%, which is an increase of 28.4% YoY.
Regarding this, it is a measure to convert fixed-term employment technical staff topermanent employment for those who meet our conditions. It has the effect of improving
the retention rate from the psychological sense of security for technical employees. In
the second half, we will promote the shift from fixed-term employment to permanent
employment in an orderly manner. Since it is proceeding a little slowly, we have given it
an internal evaluation of a single circle “○” for passing.

16

Major Initiatives in Construction Technician Dispatching (2): Improving the Retention Rate
Retention Rate
(fiscal year accumulative total)
100%

Main Initiatives for FYE2023 and Progress Evaluation

1H Target Company
Assignment Rate

87.8％

（up 3.5pts YoY）

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

◎

90%

84.2%
80%

79.3%

+4.9pts

1H Contract Renewal Rate

 Controlling changes in the work
environment through long‐term and stableassignment to the same company（up 4.7pts YoY）

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

83.0％

1H Permanent Employee
Ratio

50.0％

70%

（up 28.4pts YoY）

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

◎
〇

60%
1H Turnover Totalof Technicians

381people

50%
FYE2022 1H©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

FYE2023 1H（down 99 people YoY）

 While giving impetus according to the yearof registering, enhancing the trust visits totechnicians→ Through detailed interviews, the number of
employees who resigned decreased despite
the increase in the overall number of active
employees◎
17

Major Initiatives in Construction Technician Dispatching (1) Expanding Recruitment (5/5page):
Through these three measures, we were able to hold down the number of employees
who resigned in the first half to 381. That is 99 less people resigning YoY. While giving
impetus according to the year of registering, we are enhancing the “trust” visits totechnical employees. The “trust” visits to technical employees are activities in which we
frequently visit technical employees and interview them about various things. Throughdetailed interviews, the number of employees who resigned decreased despite theincrease in the overall number of active employees. We have given this a double circle
mark “◎” for very good.
We plan to keep the number of people resigning to 885 for the full fiscal year. As acompany, we believe that the fact that we were able to hold down the number of those
resigning to 381 people in the first half is highly commendable.

17

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

Business Alliance

Formation on 14 th November, 2022

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

Developer and Provider of theDigital Transformation Service
SPIDERPLUS

18

Major Initiatives in Construction Technician Dispatching (3) Forming a Business Alliancewith SpiderPlus & Co. (1/4 page):This is the third major initiative. It is about the business alliance with SpiderPlus & Co.
On November 14, we announced a business alliance between COPRO-ENGINEERD, aconsolidated subsidiary of COPRO-HOLDINGS, which operates a construction
technician dispatching business, and SpiderPlus & Co., which is engaged in construction
DX (digital transformation) services.

18

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

Human
Resources

Construction
DigitalTransformation

Next‐generation Human Resources Servicing
Increase Market Value of Technicians

Improve Construction Site Productivity
through Digital Transformation

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

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

19

Major Initiatives in Construction Technician Dispatching (3) Forming a Business Alliancewith SpiderPlus & Co. (2/4 page):
I will explain the purpose of the business alliance. We hire more than 1,000
inexperienced people every year. Based on the idea of "adding construction DX tohuman resources", in this business alliance, for the training of personnel who have been
recruited, we will incorporate an educational curriculum on how to operate theconstruction site DX service "SPIDERPLUS" developed by SpiderPlus & Co. This makes
it possible to assign technical staff by giving them extra value.
Until now, we have provided training in construction management, CAD and basic
business etiquette, and have dispatched technical staff to our customers. The“SPIDERPLUS” service, which is sure to spread in the future, is a wonderful solution thatwill greatly revolutionize the construction industry and improve productivity. In addition to
the training done so far, we will train our highly ambitious technical employees with"SPIDERPLUS" provided by SpiderPlus & Co., and dispatch them to our clients. In the
future, we would like to fully develop a next-generation human resource service for“Human Resources x Construction DX”.
Moreover, SpiderPlus & Co. and our company have common customers. We aim toaccelerate the introduction of “SPIDERPLUS” by sharing our customer base.

19

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

Overview of the Business Alliance(1)

Conduct training for technicians on "SPIDERPLUS•

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

•

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

→

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

(2)

Introduce "SPIDERPLUS" to Our Clients•

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

→

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

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

Company

SpiderPlus & Co.

Headquarters

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

CEOKenji Ito

Business

Developer and Provider of the Digital Transformation Service
SPIDERPLUS

Stock listings

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

20

Major Initiatives in Construction Technician Dispatching (3) Forming a Business Alliancewith SpiderPlus & Co. (3/4 page):
I will give the details of the business alliance with SpiderPlus & Co. SpiderPlus & Co. islocated in Toranomon, Minato-ku, Tokyo. The president and representative director is
President Ito, who runs the company as the founding president. The company’s businessis the development and sales of the construction DX service "SPIDERPLUS", and thecompany is listed on the Tokyo Stock Exchange Growth Market.
The details of the business alliance are as I explained earlier. In the Japaneseconstruction industry, entering into a business alliance with SpiderPlus & Co., which isabout to bring about a wave of change, will be a big plus for our business growth.
For example, we are implementing initiatives to increase the unit sales price per person
throughout the year. In this context, with the added value of mastering this“SPIDERPLUS” service, we believe that we will be able to proceed more favorably innegotiations with customers to boost charges, and we will be able to demonstrate its
effectiveness.

20

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

Overview of the Business Alliance(1)

Conduct training for technicians on "SPIDERPLUS•

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

•

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

→

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

(2)

Introduce "SPIDERPLUS" to Our Clients•

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

→

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

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

Company

SpiderPlus & Co.

Headquarters

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

CEOKenji Ito

Business

Developer and Provider of the Digital Transformation Service
SPIDERPLUS

Stock listings

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

21

Major Initiatives in Construction Technician Dispatching (3) Forming a Business Alliancewith SpiderPlus & Co. (4/4 page):
The purpose of the business alliance is to conduct training on "SPIDERPLUS" fortechnical employees. We will incorporate training related to "SPIDERPLUS" into thecurriculum at the time of joining the company, etc., and develop human resources who
can respond to the digital transformation of actual construction sites. We have started
operation for more than 100 employees newly assigned every month, and aim to create
more than 1,000 technical staff who can use "SPIDERPLUS" annually. The effects of thisare expected to be significant differentiation from other companies in the same industry
by improving the added value of technical employees, as well as an increase in thenumber of people assigned through new proposals to customers, and an increase in theunit price of dispatching.
We will introduce "SPIDERPLUS" to our client companies. In order to support theimplementation of "SPIDERPLUS", we will introduce SpiderPlus & Co. to the companies
and construction worksites where we dispatch staff to. For SpiderPlus & Co., we expect
to accelerate the introduction speed at companies and worksites that have not yet got
SPIDERPLUS.

21

1. Summary of the Consolidated Financial Results
2. Revision of Full‐year Financial Forecast for FYE2023
3. Major Initiatives in Construction Technician Dispatching
4. Appendix©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

22

Appendix:
The slides from page 22 onwards are reference materials. In the explanation of ourbusiness performance, we reported on a consolidated basis, but we mostly discussed
the initiatives for our main business, which is the dispatching of construction technicians(COPRO-ENGINEERD). In addition to the construction industry, with VALUE ARKCONSULTING, which has an IT engineer dispatching business, and ATMOS, which has
a mechanical and electrical engineer dispatching business, we are working to resolve
current issues and are making steady progress for investing in the future. Both thesecompanies joined our group through M&A. Since the impact on our businessperformance is still small with regards to the SES business and the mechanical andelectrical engineer business, today we only explained our core business of dispatching
construction technicians.
This concludes the briefing about the financial results of COPRO-HOLDINGS for thesecond quarter of FYE2023. After this, we will have enough time for questions andanswers, and we would like to answer each question one by one. Thank you for yourattention.

22

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

（people）
2,500

100%
97.4%

2,400

97.0%

97.3%

96.7%

2,300
2,200

96.6%

1H average 2,221 people

93.7%
2,151

2,100

1H average 1,965 people

1,985
1,900

1,957

1,978

2,010

95%

2,187
93%

90%

1,995

88%

1,800
1,700

98%

2,344

95.1%

2,000

97.1%

2021 Apr.

2021 June

2021 Sep.

2021 Dec.

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

2022 Mar.

2022 Apr.

2022 June

2022 Sep.

85%

Utilization rate

23

23

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

Recruitment and Turnover（people）
FYE2022
1Q

Hired total

2Q
230

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

1H
208

FYE2023
3Q

438

4Q
213

Full‐year
183

1Q

834

2Q
293

1H
315

608

Full‐year(forecast)
1,501

56

0

56

0

0

56

54

2

56

84

174
293
24
269
‐63
0
1,957

208
187
25
162
+21
0
1,978

382
480
49
431
‐42
0
1,978

213
181
21
160
+32
0
2,010

183
198
24
174
‐15
0
1,995

778
859
94
765
‐25
0
1,995

239
223
40
183
+70
+122
2,187

313
158
49
109
+157
0
2,344

552
381
89
292
+227
+122
2,344

1,417
885
‐
‐
＋616
+122
2,733

Retention Rate
FYE2022
1Q

2Q

FYE2023
3Q

4Q

1Q

2Q

Retention rate (FY accumulative total)

84.8％

79.3％

74.6％

69.4%

89.7％

84.2％

Retention rate (LTM)

68.0％

69.5％

69.2％

69.4%

71.8％

72.3％

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

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

24

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

（people）
140

99.1%

98.1%

99.1%

98.3%

135

100%
97.4%

96.7%

130

97.0%

98%

134

96%
94%

125

92%

120

122

115
110

116

90%

117

88%

111

86%
108

105

84%

106

100
95

82%

2021 June

2021 Aug.

2021 Nov.

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

2022 Mar.

2022 Apr.

2022 June

2022 Sep.

80%

Utilization rate25

25

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

Recruitment and Turnover（people）
FYE2022

FYE2023

2Q(June‐Aug.)

3Q(Sep.‐Nov.)

4Q*(Dec.‐Mar.)

2

3

15

20

14

23

37

New graduated

0

0

0

0

1

０

1

1

Mid‐career

2

3

15

20

13

23

36

84

Turnover total

Hired total

1Q(Apr.‐June)

Full‐year

2Q(Jul.‐Sep.)

Full‐year(forecast)

1H

85

5

5

5

15

8

11

19

23

Permanent employees

5

4

3

12

7

7

14

‐

Fixed‐term employees

0

1

2

3

1

4

5

‐

‐3

‐2

+10

+5

+6

+12

+18

+62

108

106

116

116

122

134

134

178

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

Retention Rate
FYE2022
2Q(June‐Aug.)FYE2023

3Q(Sep.‐Nov.)

4Q*(Dec.‐Mar.)

1Q(Apr.‐June)

2Q(Jul.‐Sep.)

Retention rate (FY accumulative total)

95.4%

91.7%

88.9%

93.1%

89.7%

Retention rate (LTM)

92.7%

90.8%

88.9%

84.7%

85.2%

*Retention rate (FY accumulative total) = Among the technical employees who were registered at the end of the previous fourth quarter, the percentage who were still registered at the end of the relevant
quarter.
*Retention rate (LTM) = Among the technical employees who were registered at the end of the quarter one year ago, the percentage who were still registered at the end of the same quarter one year later.
*For the 4Q of FYE2022, due to the change in the month that the fiscal year ends, the results for the four months from December 2021 to March 2022 are included.

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

26

26

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

Number of Engineers Working

Number of IT Freelance Registrants

100

450
96

95
90

9,000
7,851

80

5,000

213

200

4,000

150

3,000

100

75

6,000

250

250

85

2,000

70

50

2021

2021

2022

2022

2022

Oct.

Dec.

Mar.

June

Sep.

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

8,000
7,000

300

87

85

70

408

400
350

91
90

Cumulative Number
of Registrants

Number of New Registrants（people）（people）

01,000

FYE2022/3

FYE2022/3

FYE2023/3

FYE2023/3

3Q

4Q

1Q

2Q

FYE2023/3 2Q

0

27

27

Disclaimer and Forward‐Looking Statements

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

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

28

28