June 6, 2022
COPRO-HOLDINGS Co., Ltd.
Corporate Planning Office

Q&A Summary from the Analyst & Individual Investor
Joint Briefing for FYE2022 Financial Results and theMedium-Term Management Plan
This is a summary of the question-and-answer session from the analyst and individual investor
joint briefing about our financial results for the full FYE2022 and medium-term management planthat was held on May 18, 2022. To make it easier to understand, we have changed, revised andamended the summary of the question-and-answer session.
Q: Are there any plans to consider introducing shareholder incentives?
A: Shareholder returns, which we consider to be one of the important management issues, aregiven based on dividends. Other returns will be reviewed and any changes will be disclosed
promptly.
Q: You said that you are aiming for sales of ¥40 billion in FYE2027, the final year of the mediumterm management plan, but is there a market capitalization target at that time?
A: If we can achieve sales of ¥40 billion and non-GAAP operating profit of ¥5 billion, which are theperformance targets for the final year of the medium-term management plan, even if the current
stock price valuation such as PER does not change, we believe that we can meet market
capitalization of ¥10 billion or more for outstanding shares, which is criteria for a Prime listingthat the Company doesn’t yet meet.
In addition, showing the growth strategy in the medium-term management plan, if weachieve the performance targets for each fiscal year, we think there is a likelihood that theperformance targets set forth in the medium-term management plan will be recognized, and thestock price valuation will be revised.
Q: What is the current status regarding the acceptance of foreign human resources?
A: In 2021, we established COPRO Vietnam as a local business corporation and have been
preparing for the past year. While overseas travel has been restricted due to the novel
coronavirus pandemic, internal preparations are steadily progressing locally. Specifically, we areapproaching the final stage of concluding a contract with a local educational institution. After thecontract is signed, we collaborate with the institution closely to start recruiting and educating
engineering students who wish to work in Japan.
Q: It seems that the low retention rate for dispatched construction and plant technicians is an issue.
Please tell us what kind of measures you are considering for the future.
A: For our Company, which provides human resource services, human capital is the basis of ourcorporate value, so our growth depends on how long the technicians stay to demonstrate theirabilities. In the future, as we aim to grow our business results by increasing the number oftechnical employees, it is necessary to increase the hiring of not only technicians with industryexperience, which is a tight market for recruiting, but also those who are inexperienced in ourindustry who are considering changing jobs from other industries, and new graduates fromuniversities and vocational schools.
However, it is not easy for inexperienced people and new graduates to build a long tomedium term career at construction sites that they are not familiar with; therefore, we are in a

situation where they resign soon after joining the Company unfortunately. Thus, in the recently
announced medium-term management plan, we aim to actively support them in forming theircareer paths, which until now has largely been left to the initiative of the engineers andtechnicians themselves. We name this career support system as "Technician Support Platform".
With this platform, while presenting goals that are a step ahead of the engineers and technicians,
we will provide a training system and consider the next destination for them to be dispatched toregarding their career development.
We would like to provide both technicians and client companies with service value that isin line with the Group's purpose of having “The Best Work Style. The Best Workers.”, which wasset out in the medium-term management plan.
Q: I have a question about the recruitment plan for the construction and plant technician dispatchingbusiness for FYE2023. You have set a high target of 1.8 times the number of hires compared tothe previous fiscal year, but how do you think you will achieve that?
A: From the time we were founded, as the cost to hire one technician, recruitment per head (PH)has been set as an important benchmark for recruitment activities. Until the previous fiscal year,
for our internal criteria, we set the recruitment PH at nearly half the level compared to the sameindustry. We have been working toward high-quality recruitment activities that keep costs down.
However, in the previous fiscal year, the number of hires slowed as the rigid internal standard
delayed investment in flexible recruitment costs.
For FYE2023, while maintaining cost-effective recruiting activities, which is our strength,
we plan to raise the internal criteria for recruitment PH and increase hiring costs by about 2.5
times compared to the previous fiscal year. While the promotion of sales reform has beensuccessful, it has achieved certain effects such as a significant increase in the number of orders
received from client companies during EYE 2022. However, there have not been enough humanresources to match the projects received as we failed to hire. Overcoming the current situationof losing out to others in the area of hiring, we will increase the number of people assigned.
Q: Regarding the construction and plant technician dispatching business, please tell us about theimpact of the current coronavirus pandemic, such as customer deals and the hiring aspect.
A: In the previous fiscal year, due to the impact of the coronavirus pandemic, orders weretemporarily reduced due to the postponement of construction work, mainly by major generalcontractors. However, at present, the sales reforms that have been promoted within theCompany are beginning to take effect, and the number of orders received exceeds 2,000 permonth, so it can be said that demand is brisk. As mentioned earlier, the challenge is to secure
human resources that match the orders received, so for FYE2023, we will secure excellent
human resources by actively investing in hiring costs.
Q: I have a question about the recruitment plan for the mechanical design and development
engineer dispatching business for FYE2023. Eighty-five people are expected to be recruited,mainly mid-career hires, but please tell us about the current situation. In particular, mid-career
hiring is difficult, and I get the impression that the cost of hiring human resources is increasing.
Also, do you think the demand for mechanical design and development engineers will be strong
for some time?
A: ATMOS Co., Ltd., which operates a mechanical design and development engineer dispatchingbusiness, has been improving their internal systems since joining the Group via M&A in June
2021. Regarding recruitment, before they became a part of the Group, there was no new hiring
for the purpose of increasing the number of employees, but from the third quarter of the previous
fiscal year, we started activities with a hiring manager.
As a result, the number of hires in the fourth quarter was 15, which is a significant increase

from three in the third quarter and two in the second quarter. As with construction, there is a
shortage of engineers in the field of mechanical design and development, and the demand for
temporary staff engineers is high. In FYE2023, while further strengthening recruitment activities,and promoting the hiring of expert human resources from manufacturers, our policy is toenhance the training system and increase the number of young people hired.
Q: Compared to the competition, please tell us the competitive advantage of COPRO.
A: Since the human resources business is a business that deals with people, we value being close
to each engineer and technician. Therefore, since our founding, dispatching engineers andtechnicians is not the end, and we have put emphasis on following up after they are dispatched.
Even after dispatching the engineers and technicians, the sales staff in charge of matching themvisit the site they have been dispatched to, and there is close communication to find out whether
they are worried about anything, or are there any problems in the work environment.
However, the human resources business is also an industry where it is difficult todifferentiate. As explained earlier, in order for engineers and technicians and client companiesto choose COPRO over other companies, in the medium-term management plan we justannounced, we aim to build a "Technician Support Platform" and strive to differentiate the humanresources service itself.
Q: Is my understanding correct that the main factor behind the forecast for a profit decline in
FYE2023 is the increase in recruitment costs? Also, is it expected that hiring costs will increasein the next fiscal year and beyond?
A: In FYE2023, we anticipate an increase in sales and a decrease in profits due to an increase in
selling and administration expenses, mainly due to the aggressive investment in recruitment
costs. From FYE2024 onwards as well, recruitment costs are expected to increase in proportion
to the number of hires because we will increase the number of hires toward the target of 6,200
group engineers and technicians for FYE2027, the final year of the medium-term management
plan. However, the decrease in profit due to upfront costs will be until FYE2023, and fromFYE2024 we would like to create a trend of increasing sales and profits.
Q: As for the future direction of the business, please tell us whether you will continue to strengthen
the labor-intensive business model or gradually break away from it.
A: Since temporary staffing is a labor-intensive business, how to maximize the productivity of sales
and recruiters is important for the business. For this reason, we are advancing various initiatives
with the aim of creating a system in which everyone can perform above a certain standard due
to individualistic methods where sales staff and recruiters who have excellent individual skills
only produce results.
In the previous fiscal year, the sales reform efforts that were part of this began to beeffective, and by the end of the fiscal year, we received more than double the number of orders
from customers than the beginning of the fiscal year. In FYE2023, we will apply the bestpractices of sales to recruitment activities, and will improve productivity.
Q: Can we think of your Company as improving working conditions, such as the working
environment and salaries of engineers and technicians, and creating an environment where they
can work with peace of mind? Could you please tell us about specific initiatives?
A: Under the principle of equal pay for equal work, the Company has signed a labor-managementagreement with representatives of a majority of our employees. It sets out wages, such as basic
salary, and conditions other than wages. We guarantee wages equal to or higher than theaverage wages of ordinary workers stipulated by law, and raise wages annually based on ourevaluation standards. Regarding conditions other than wages, we are actively working to switch

from fixed-term employment contracts to indefinite-term employment contracts for the purposeof stabilizing employment and raising an awareness of belonging.
Also, during the monthly trust activities, we listen to the voices of various technicalemployees, and work to eliminate anything that is unreasonable. We are working to create acomfortable working environment where it is easy to work. At the same time, we have opened a
support center and set up a place to listen to the voices of technical employees in addition to
the trust activities. While we cannot currently hold meetings due to the novel coronavirus
pandemic, there are safety conferences with technical employees in each area to share
information on occupational accidents and health management.
Since fiscal 2017, we have formulated a "long working hours reduction plan" to promote
employee health management and working style reforms. The target is achieved every year,
and the target for this fiscal year is the same upper limit as the revised Labor Standards Law
that will be applied from 2024. As measures against the novel coronavirus, we actively
recommend vaccinations, such as allowing vaccinations during working hours, and setting up
special paid leave for the coronavirus and support influenza vaccinations, and the distributionof heat stroke prevention items.
We will continue to work closely with technical employees to create a comfortable working
environment in terms of wages and other conditions.
Q: In FYE2023, while it is expected that the ratio of operating profit to sales will fall to 7.5% due tothe increase in recruitment costs, please tell us your expectations for hiring costs and the ratioof operating profit to sales from FYE2024 onwards.
A: With regards to recruitment costs from FYE2024 onwards, just like in FYE2023, we assume asales ratio of from 3% to 4%. For the ratio of operating profit to sales, we aim to recover to 10%
or more during the medium-term management plan period.
Q. With regards to charging up negotiations (the negotiations to revise the contract unit price forengineers and technicians), is there still room to improve the cost of sales ratio?
A: Due to the structure of the human resources business, it is difficult to significantly reduce thecost rate. Therefore, while maintaining the cost rate by charging up, we will boost management
efficiency by controlling selling and administration expenses through improving productivity
while increasing sales.
Q: What measures are you taking to prevent the turnover of engineers and technicians?
A: At our Company, sales visit engineers and technicians to ask about their employment status andfuture wishes, which is called trust activities. Since our founding, we have put effort into following
up after they are assigned. Once a month we visit the sites they have been dispatched to, andcommunicate closely with the engineers and technicians.
Q: Selecting the Standard Market, isn't there an option to actively buy back shares?
A: Due to the reorganization of the Tokyo Stock Exchange market segments, our Company selected
the Prime Market, and we changed markets on April 4, 2022. In order to meet the standards tomaintain a Prime listing, we aim to meet the “market capitalization of ¥10 billion or more foroutstanding shares” standard which we currently do not conform to.
Q: Is your earnings forecast for FYE2023 bullish? Or is it conservative?
A: While we have no intention of making a conservative plan, it is a level that can be fully achieved.
In addition to promoting medium-term strategies in order to realize the medium-term
management plan, we would like to tackle current issues such as sales and hiring, and do ourutmost to achieve the earnings forecast.

Q: With regards to losing out to competitors in the area of hiring, is it because you did not spendmoney on recruitment costs?
A: With regards to losing out in hiring, we do not mean we have lost out to a specific competitor.
We meant that the fact that the recruitment department could not secure new employees tomeet the demand of the increasing job offers. Since the recruitment market in Japan is extremely
tight against the backdrop of a decline in the working population, it is a struggle to get excellent
human resources regardless of the industry. From FYE2023, we would like to properly
strengthen recruitment, while expertly controlling hiring costs.
Q: You explained that you are aiming for the highest profit in FYE2024, but Isn’t there a possibility
that profits will decline after FYE2024 due to leading investments?
A: Since the number of engineers and technicians could not be increased as expected in theprevious fiscal year, the reason for a forecast of declining profits in FYE2023 is that the increasein hiring costs cannot be absorbed by the increase in the top line. If, during FYE2023, we canbuild up the number of engineers and technicians, from the next fiscal year onwards, we believethat we will be able to create a trend for higher sales and profits as is characteristic of an
accumulative business model that can be expected to stably expand profits.
End