Fiscal Year Ending March 31, 2022

November 11, 2021

Contents

1. Financial Highlights
2. Breakdown of Sales & Key Performance Indicators（Dispatching business of construction and plant engineers）

3. Breakdown of Sales & Key Performance Indicators（Dispatching and contracting business of machinery design and development engineers）

4. Major Topics from 1st Quarter Financial Results Announcement
5. FYE2022 Financial Forecast and Business Outlook
6. Returning Shareholders
7. Story of Value Creation©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

11. Financial Highlights
2. Breakdown of Sales & Key Performance Indicators（Dispatching business of construction and plant engineers）

3. Breakdown of Sales & Key Performance Indicators（Dispatching and contracting business of machinery design and development engineers）

4. Major Topics from 1st Quarter Financial Results Announcement
5. FYE2022 Financial Forecast and Business Outlook
6. Returning Shareholders
7. Story of Value Creation©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

2

Consolidated Financial Results• Made ATMOS CO., LTD., a company engaged in the dispatching and contract business of machinery design anddevelopment engineers, a subsidiary and consolidated results for 3 months.
• Operating profit increased +19.0% year on year, supported by an improvement in the cost of sales ratio due tonegotiations for a charge-up by COPRO-ENGINEERD.

（millions JPY）
FYE2021

1st Half

FYE2022Full-year

1st HalfYear-on-year(amount)

Full-year(revised forecast
on Aug. 11)(%)

Net sales

7,271

14,836

7,402

+130

+1.8％

16,943

Cost of sales

5,255

10,539

5,168

△87

△1.7％

11,788

72.3％

71.0％

69.8%

－

△2.5pts

69.6％

Ratio to sales
Gross profit

2,015

4,297

2,233

+218

+10.8％

5,155

Ratio to sales

27.7％

29.0％

30.2%

－

+2.5pts

30.4％

SG&A expenses

1,483

2,859

1,601

+117

+7.9％

3,500

Ratio to sales

20.4％

19.3％

21.6%

－

+1.2pts

20.7％

Operating profit

531

1,437

632

+100

+19.0％

1,655

Ratio to sales

7.3％

9.7％

8.5%

－

+1.2pts

9.8％

Ordinary profit

534

1,439

630

+96

+18.1％

1,657

Ratio to sales
Profit attributable to owners ofparentRatio to sales

7.3％

9.7％

8.5%

－

+1.2pts

9.8％

404

1,009

328

△76

△18.9％

1,077

5.6％

6.8％

4.4%

－

△1.2pts

6.4％

Earnings per share (JPY)

42.92

106.74

34.38

△8.54

－

112.76

Dividend per share (JPY)

10.00

37.50

10.00

－

－

40.00

※ The Company conducted a 2-for-1 share split on April 1, 2021. The Company assumes that the share split occurred at the beginning of
the period in order to calculate earnings per share for FYE2021.

©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

3

Consolidated Operating Profit
・COPRO-ENGINEERED：Gross profit increased due to stronger negotiations for charge-up, which contributed to an
improvement in the cost of sales ratio.
・ATMOS：3 months' worth of earnings (June to August) were newly consolidated. Cost of sales ratio rose in the dispatchingbusiness and the contracting business due to a decrease in the number of working days and hours due to summer
vacations. In addition, the contracting business posted an operating loss due to a negative contribution from grossprofit due to a deterioration in profitability in the in-house product development business.
・Consolidated operating profit increased as improved earnings at COPRO-ENGINEERED offset M&A-related expenses, etc.

ATMOS
△20

COPRO-ENGINEERED+276（millions JPY）

Cost of sales ratio
69.2％(YOY △3.1pts)

Operating profit YoY＋100

FYE2021 1st Half
Operating profit

COPRO-ENGINEERED
Increase in gross profit

COPRO-ENGINEERED
Decrease in SG&A

©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

ATMOS
ATMOS
Increase
Increaseiningross
grossprofit
profitdue (Dispatch
to new consolidation
business)(Dispatch business)

ATMOS
Decrease in gross profit
due to new consolidation(Contract business)

ATMOS
Increase in SG&A
due to new consolidation

M&A-related expenses

Others(Corporate andConsolidated
Adjustments)

FYE2022 1st Half
Operating profit

4Quarterly Financial Results• In 2nd quater (July to September), net sales turned to an increase due to the new consolidation of ATMOS and a slightincrease in sales of COPRO-ENGINEERED. Further, following on from 1st quarter (April to June), operating profit
maintained its upward trend, as the increase in SG&A expenses was offset by the increase in gross profit.
(millions JPY)

1Q

2Q

Results

Previous
quarter

Net sales

3,555

3,606

Cost of sales

2,491

2,645

70.1％

Ratio to sales
Gross profit

Results

Previous
quarter

△1.4%

3,846

3,664

△5.8％

2,676

2,610

73.3％

△3.2pts

69.6%

YoY

1st Half
Results

Previous
1st H

+5.0%

7,402

7,271

+2.5%

5,168

5,255

71.2％

△1.6pts

69.8%

72.3%

YoY

3Q
Results

Previous
quarter

+1.8%

－

3,796

△1.7%

－

2,659

△2.5pts

－

YoY

4Q

Full-year

Results

Previous
quarter

－

－

3,768

－

16,943

14,836

－

－

2,623

－

11,788

10,539+11.9%

70.0%

－

－

69.6%

－

69.6％

71.0%

△1.4pts+20.0％

YoY

Revised Previous
forecast
FY

YoY

YoY
+14.2%

1,063

961+10.7％

1,170

1,054

+11.0％

2,233

2,015

+10.8％

－

1,137

－

－

1,144

－

5,155

4,297

Ratio to sales

29.9％

26.7％

+3.2pts

30.4%

28.8％

+1.6pts

30.2%

27.7%

+2.5pts

－

30.0%

－

－

30.4%

－

30.4％

29.0%

+1.4pts

SG&A expenses

786

762

+3.0％

815

720

+13.1％

1,601

1,483

+7.9％

－

711

－

－

664

－

3,500

2,859

+22.4％

Ratio to sales

22.1％

21.1％

+1.0pts

21.2%

19.7%

+1.5pts

21.6%

20.4%

+1.2pts

－

18.7%

－

－

17.6%

－

20.7％

19.3%

+1.4pts

Operating profit

277

198

+40.0％

354

333

+6.4％

632

531

+19.0％

－

426

－

－

479

－

1,655

1,437

+15.1％

Ratio to sales

7.8％

5.5％

+2.3pts

9.2%

9.1%

+0.1pts

8.5%

7.3%

+1.2pts

－

11.2%

－

－

12.7%

－

9.8％

9.7%

+0.1pts▪COPRO-ENGINEERED. Co., Ltd.（Dispatching business of engineers on the construction and plant industry）
Net sales

3,555

3,606

△1.4％

3,683

3,664

+0.5％

7,238

7,271

△0.5％

－

3,796

－

－

3,768

－

－

14,836－Gross profit

1,063

961

+10.7％

1,164

1,054

+10.5％

2,228

2,015

+10.6％

－

1,137

－

－

1,144

－

－

4,297

－

87 +161.2％

360

224

+60.5％

588

311+88.8％

－

292

－

－

342

－

－

946

－

Operating profit
Number of engineers
Sales PH (thousands of yen)

228
1,957

2,044

△87

1,978

2,002

△24

1,978

2,002

△24

－

2,054

－

－

2,020

－

2,440

2,020

+420

628

624

+4

637

628

+9

635

626

+9

－

636

－

－

633

－

－

630

－

※ Sales Per Head：Average monthly sales per engineer▪ATMOS CO., LTD.（Dispatching business of machinery design and development engineers）
Net sales

163

163

－

－

－

5

5

－

－

－

Operating profit

△20

△20

－

－

－

Number of engineers

108

108

－

－

130

Sales PH (thousands of yen)

555

555

－

－

－

Gross profit※ Number of engineers are the sum of both dispatched and contracted engineer.
©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

※ Sales Per Head：Average monthly sales per engineer excluding contracted engineer.

5Balance Sheet・（Assets）Current assets decreased due to payments for acquisition of subsidiaries, purchase of treasury stock,and payment of dividends. On the other hand, fixed assets increased due to the acquisition ofsubsidiaries, the relocation of the head office, and the development of a new core system.
・（Liabilities）Liabilities declined due to a decrease in accrued consumption taxes, while accounts payable increased
due to the new consolidation of subsidiaries and other factors.

Balance Sheet

Commitment Lines(millions JPY)

FYE2021
4Q(millions JPY)

FYE2022
Remarks

2Q

YoY

7,407

6,092

△1,314Credit line

Cash and deposits

5,320

3,694

△1,625Used

Non-current assets

1,106

2,347

+1,240Current assets

Goodwill

－

885※

+885

Total assets

8,514

8,439

△74

Liabilities

2,241

2,193

△48

2,162

2,066

△96

78

127

+48

6,272

6,245

△26

Shareholders’ equity

6,272

6,225

△46

Liabilities and net assets

8,514

8,439

△74

Interest-bearing liabilities

89

7

△81

73.7%

73.8%

+0.1pts

Current liabilities
Non-current liabilities
Net assets

Equity ratio©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

UnusedFYE2021

FYE2022

4Q

2Q
3,000

3,000

0

0

3,000

3,000

Recorded as a result of the acquisition of all sharesof ATMOS CO., LTD. and VALUE ARK CONSULTING
CO., LTD.. Provisionally determined amounts asallocation of acquisition costs has not been
completed.

6Non-Consolidated Results of Subsidiaries
COPRO-ENGINEERED. Co., Ltd.

ATMOS CO., LTD.
（millions JPY）

FYE2021（millions JPY）

FYE2022

1st Half Full-year 1st Half

FYE2021Year-on-year(amount)

FYE2022

1st Half Full-year 1st Half(%)

Net sales

7,271

14,836

7,238

△32

△0.5％

Net sales

163

Cost of sales

5,255

10,539

5,010

△245

△4.7％

Cost of sales

158

72.3％

71.0％

69.2％

Gross profit

2,015

4,297

2,228

+212

+10.6％

Gross profit

5

SG&A expenses

1,703

3,350

1,639

△64

△3.8％

SG&A expenses

26

Operating profit

311

946

588

+276

+88.8％

Operating profit△20

Ratio to sales－ △3.1pts• Net sales fell 0.5% YoY due to a decline in the number ofengineers, affected by the prolonged emergency
declaration caused by COIVD-19.
• In response to the increase in the salary base fordispatched engineers following the "equal pay for equal
work" system that went into effect in April 2020,
negotiations on charge-ups, which were positioned as a toppriority issue, contributed to the increase in gross profit,
resulting in an increase in operating profit.

©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

Ratio to sales

Year-on-year(amount)

(%)

96.7％

• Cost of sales ratio rose in the dispatching and contracting
businesses as the number of working days and hours
declined due to summer holidays. Also, in the contracting
business, gross profit was negative due to the deteriorationin profitability in the in-house product development
business, and as a result, the cost of sales ratio was at ahigh level of 96.7%.
• The Company booked an operating loss due to an increasein the cost of sales.

71. Financial Highlights
2. Breakdown of Sales & Key Performance Indicators（Dispatching business of construction and plant engineers）

3. Breakdown of Sales & Key Performance Indicators（Dispatching and contracting business of machinery design and development engineers）

4. Major Topics from 1st Quarter Financial Results Announcement
5. FYE2022 Financial Forecast and Business Outlook
6. Returning Shareholders
7. Story of Value Creation©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

8

Sales by Business Partner and Area
• Sales declined at major general contractors and subcontractors, which are in a lull in demand for urban
redevelopment from the Olympic Games, and sales declined mainly in the 3 major metropolitan areas due to theprolonged declaration of an emergency due to COVID-19.

Sales by Area

Sales by Business Partner（millions JPY）
8,000

（millions JPY）
8,000

7,271

7,238
Super general

7,000
1,656
6,000
5,000

1,491

Targetcustomer sales

Targetcustomer sales

3,144
628
167

2,871

composition ratio
excluding Plant

693

50.9％

592
195
591

composition ratio
excluding Plant

Semi-major general

6,000

7,238

348

323

523
177

539
213

3,034

3,236

5,000
Mid-sized generalcontractors
Others

2,000
1,000
1,093

1,131

0

2,848

4,000

Plant

3,000

5,166

2,685

1,000

5,045

Percentage of the 3
major metropolitan
areas

Percentage of the 3
major metropolitan
areas

71.1％

69.7％

Kanto

Tokai

1,276

1,337

1,042

1,022

534

473

534

641

Shikoku
Kyushu2,000

0
FYE2021

FYE2022

FYE2021

FYE2022

1st Half

1st Half

1st Half

1st Half©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

TohokuHokuriku

Major sub3,000

Hokkaido

contractors

47.0％
contractors

4,000

7,000

contractors

7,271

Kansai

Chugoku and9

Sales by Industry• Sales of facilities declined due to a decrease in projects prior to completion. On the other hand, projects at thedesign stage and immediately after construction started are trending upward, and construction and CAD sales
increased.

FYE2022 1st Half

FYE2021 1st Half（millions JPY）
185

（millions JPY）
237(+27.9％)736(+366.8％)
Construction

Civil engineering

1,093

1,131
(+3.5％)

2,243

2,283
(+1.8％)

Facilities

CAD

563
625
(+11.1％)

7,271
1,844

7,238

Plant

(YoY △0.5％)

Construction officework
Staffing agency

1,332

1,647
(△10.7％)

Percentage of constructionengineer dispatch
82.3％

1,276
(△4.2％)

Percentage of constructionengineer dispatch
80.6％

Note: Figures in parentheses indicate year-on-year changes in net sales.
©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

10Number of Engineers & Occupancy Rate
• The number of engineers at the end of this 2nd quarter was 1,978, down 24 from the end of the previous 2ndquarter.
• The occupancy rate of engineers at the end of 2nd quarter was 97.0%, down 0.7 percentage points from the endof the previous 2nd quarter.

（No. of engineers）
2,400
98.1%

97.7%

99%

97.8%

2,300

97.4%

97.0%

98%
97%

95.8%

96%
94.4%

2,200

95%
94%

2,100

93%

1st Half averages 2,031

92%

Full-year averages 2,036
1st Half averages 1,965(YoY △3.2％)

2,000

91%
90%

1,900
2,044
1,984

2,002

2,054

89%
2,020
1,957

1,800

1,978

88%
87%
86%

1,700

85%
March
2020

June
2020

September
2020

December2020

No. of engineers©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

March
2021

June
2021

September
2021

Occupancy rate11

Recruitment / Turnover, Retention Rate & Contract Renewal• The number of hires was restrained due to weakening demand for human resources, particularly in urban areas,
following the prolonged emergency declaration.
• From the fiscal year under review, the effects of the change to a system in which sales employees consistently
conduct sales to temporary staffing destinations and after-sales services for engineers are gradually becoming
apparent, and the number of 2nd Quarter retirements declined from 1st Quarter.

Recruitment / TurnoverRetention Rate

FYE2021

Hired total

FYE2022
1st Half

YoY(forecast)

865

438

－

New-grads joined in April

89

56

△33

Mid-carrier: 1Q

192

174

△18

Mid-carrier: 2Q

181

208

+27

Mid-carrier: 3Q

231

－

－

Mid-carrier: 4Q

172

－

－

829

480

－

Permanent employees

68

49

－

Fixed-term employees

761

431

－

Turnover: 1Q

221

293

+72

Turnover: 2Q

223

187

△36

Turnover: 3Q

179

－

－

Turnover: 4Q

206

－

－

+36

△42

－

+420

2,020

1,978

－

2,440

Turnover total

Net change
No. of engineers©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

FYE2021

FYE2022

1,200

1Q

2Q

FYE2022

3Q

4Q

1Q

2Q

Permanent employees (LTM) 84.5％ 85.8% 85.2% 85.2% 78.9% 77.0％
year-to-date

95.7% 92.2% 87.9% 85.2% 94.2% 88.9％

Fixed-term employees(LTM)
year-to-date

71.5%

70.6%

68.7%

66.7%

65.8%

68.0％

88.8%

78.6%

72.8%

66.7%

82.4%

76.8％

Retention rate; the percentage of engineers who were employed at the end of the quarter 1
year ago and who were employed at the end of the current quarter 1 year later.

780

Year-to-date retention rate; the percentage of engineers employed at the end of the previous
FY4Q that were employed at the end of the current fiscal quarter.

Contract Renewal Ratio
FYE2021
1Q

2Q

1H

3Q

FYE2022
4Q

Fullyear

1Q

2Q

1H

Contract
63.2％ 67.6% 65.3％ 67.8% 70.0% 67.1% 74.1% 82.2％ 78.3％
renewal ratio

12

Average Monthly Contract Amount per Engineer by Years of Experience• The company-wide average contract amount improved significantly to +11 thousand yen YoY thanks to the successof the strengthening of charge-up negotiations. In addition, the contract amount was positive for all years.
• The contract amount at the end of 2nd Quarter decreased for engineers in the 1st, 2nd, and 3rd to 5th years
compared to the end of 1st Quarter due to a decrease in the mix of engineers in urban areas with relatively higher
contract amount.

Year-on-year

Quarterly Trends（ten thousands JPY）

（ten thousands JPY）
62.4 63.9

54.2 55.3
42.6 43.2

Company-wide

1st year45.9 47.4

2nd year49.1 50.4

53.5

55.7 56.2

55.2 55.3
44.2 43.2

3rd-5th year

6th-10th year

average

FYE2021 2Q

56.2

63.7 63.9

FYE2022 2Q©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

11th year or

Company-widemoreaverage

1st year47.6 47.4

2nd year50.6 50.4

3rd-5th year

6th-10th year

11th year or
more

1Q

2Q

13

1. Financial Highlights
2. Breakdown of Sales & Key Performance Indicators（Dispatching business of construction and plant engineers）

3. Breakdown of Sales & Key Performance Indicators（Dispatching and contracting business of machinery design and development engineers）

4. Major Topics from 1st Quarter Financial Results Announcement
5. FYE2022 Financial Forecast and Business Outlook
6. Returning Shareholders
7. Story of Value Creation©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

14

Sales by Area and Industry• Sales were robust in Tokai and Kyushu, which are the bases of the automotive industry, the company‘s main
trading industry. Meanwhile, Hokuriku, which is the base of sales in the aircraft industry, struggled due to theimpact of COVID-19.
• The consumer electronics industry, where the impact of COVID-19 worked positively, showed an upward trend.

Sales by Area

Sales by Industry（millions JPY）

Dispatch BusinessContract Business

100

100

90

90

80

73

70
60

60

50

50

40

40

30

30

20

30

10

10

0

20

7

Tokai

29

5
17

©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

Chugoku

90

90

80

60

Hokuriku

30
20
10
0

FYE2022 2Q

73

80

89
21

70
15

50
40

Kyushu13

100

and Shikoku

23

Contract Business

100

70
Kansai0

FYE2022 2Q

Dispatch Business

89

80
70

35

（millions JPY）

29

60

15

50

2

11

20

Agricultural
machineryHomeappliances

40

Industrial
machinery

30
17

Aerospace

50

Transportation
Machinery

100

FYE2022 2Q

FYE2022 2Q

15Number of Engineers & Occupancy Rate
• At the end of this 2nd Quarter, the number of engineers was 108.
• The occupancy rate at the end of this 2nd Quarter was 98.1%. The occupancy rate remained at a high level due tothe sharing of human resources between the dispatching business and the contracting business.

（No. of engineers）
118

98.2%

116

98.2%
96.5%

97.2%

98.1%

98%

96.4%

96.3%

100%

114

96%

112

94%

110

92%

108

90%

106
104

88%

113
111
109

109

110

111

86%
108

102

84%

100

82%

98

80%
March

May

AugustNovemberFebruary

May

August

2020

2020

2020

2020

2021

2021

2021

No. of engineers©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

Occupancy rate16

Recruitment / Turnover, Retention Rate & Contract Renewal• The Company achieved a high retention rate by sharing human resources between the dispatching business andthe contracting business, and the contract renewal rate remained at a high level.

Recruitment / TurnoverRetention Rate
FYE2022
2Q(June-August)

Hired total

2

FYE2021

FYE2022(forecast)

30

New-grads joined in April

Retention rate (LTM)

year-to-dateMid-carrier: 1Q
Mid-carrier: 2Q2

Mid-carrier: 3Q－

Mid-carrier: 4Q－

Turnover total*

5

Permanent employees*

5

Fixed-term employees

0

FYE2022

1Q

2Q

3Q

4Q

1Q

2Q

88.6%

87.7%

89.0%

90.8%

90.9%

92.3％

98.8%

95.5%

93.4%

92.2%

97.6%

95.2％

Retention rate; the percentage of engineers who were employed at the end of the quarter 1
year ago and who were employed at the end of the current quarter 1 year later.
Year-to-date retention rate; the percentage of engineers employed at the end of the previous
FY4Q that were employed at the end of the current fiscal quarter.

10

Turnover: 1Q

Contract Renewal Ratio

Turnover: 2Q

5

Turnover: 3Q－

Turnover: 4Q－

FYE2021

Net change

△3

+20

No. of engineers

108

130

1Q
Contract
renewal ratio

2Q

1H

3Q

FYE2022

4Q

Fullyear

1Q

2Q

1H

93.1％ 91.7% 92.5％ 94.4% 86.7% 90.9% 89.7% 93.8％ 91.5％* Number of turnover includes 2 career changes from engineers tomanagement employees.
©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

17

Average Hourly Contract Amount by Years of Experience• As the number of years of experience accumulated, the hourly contract amount rose.

Average Hourly Contract Amount（Dispatch business）（JPY/Hour）* Average hourly contract amount at the end of 2Q FYE2022.

4,000
3,500

3,749
3,359

3,260

2,830

3,000
2,500
2,000
1,500
1,000
500
0
Dispatch business1st-5th year

6th-10th year

11th year or more

Company-wide average©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

18

1. Financial Highlights
2. Breakdown of Sales & Key Performance Indicators（Dispatching business of construction and plant engineers）

3. Breakdown of Sales & Key Performance Indicators（Dispatching and contracting business of machinery design and development engineers）

4. Major Topics from 1st Quarter Financial Results Announcement
5. FYE2022 Financial Forecast and Business Outlook
6. Returning Shareholders
7. Story of Value Creation©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

19

Major Topics ①
Acquisition of Shares of VALUE ARK CONSULTING CO., LTD. (announced on September 14)• Resolved to acquire VALUE ARK CONSULTING with the aim of building a business portfolio specializing in high-valueadded engineers within the human resource services industry. On September 30, the Company acquired all of its
shares and made it a subsidiary.
• While technological innovation is advancing, in the IT field, where the shortage of technicians is expanding, theCompany will incorporate the growth potential of VALUE ARK CONSULTING, which is developing the SES (System
Engineering Service) business of free-lance IT engineers, and further expand its financial results.
Forecast of the Supply-demand Gap for IT Human Resources

Company Outline（ten thousand of people）
Head office

7-22-17 Nishi-gotanda, Shinagawaku, Tokyo

Description ofbusiness

System engineering service (SES)Capital10 million JPY

Established

June, 2004

Fiscal year-end

May

No. of registeredengineers

7,275

No. of valid
registered engineers

2,093

No. of activeengineers

91

200

150

* Number of engineers as of the end of October 2021

Demand for human resources
is expanding faster than
supply due to the expansionof IT needs

Shortage of HR

450,000(Median scenario)

Shortage of HR

220,000

100
The supply of IT
personnel is gradually
increasing

50

02015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
No. of human resources supplied

Shortage of human resources* Ministry of Economy, Trade and Industry, "Survey Results on the Latest Trends and Future Estimates of IT
Human Resources"©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

20

Major Topics ②
The Assessment of Compliance with the Continued Listing Criteria for the New Market Segments
and the Resolution to Select the Prime Market (announced on September 10)• In response to the assessment from the TSE regarding the status of compliance with the continued listing criteria,
the Company resolved to select the “Prime Market" for the new market segments and aim to satisfy the listing criteria
while being subject to grandfathering measures.
• The Company plans to disclose its plans to meet the continued listing criteria for the Prime Market through “Plants tomeet the continued listing requirements,” which is scheduled to be submitted by December 2021.

Prime Market’s continued listing requirements

Our compliance status（As of June 30, 2021）

Number of shareholders

At least 800 shareholders

2,178 shareholders〇

Number of tradable shares

At least 20,000 units

39,736 units〇

Tradable share market capitalization

At least 10 billion JPY

53.1 billion JPY×

Trading value

At least daily avg. 20 million JPY

120 million JPY〇

Tradable share ratio

At least 35％

39.7％

〇

※ Our compliance status is calculated based on the distribution of our stock certificates, etc. as known by the Tokyo Stock Exchange as of June 30,
2021, the record date.

Repurchase of Own Shares (announced on September 14)• The Company resolved to repurchase up to 0.3 million shares or a total of 350 million JPY in treasury stock.
• The Company will implement flexible capital policies in response to changes in the business environment in order tocomply with the continued listing criteria for the Prime Market of at least 10 billion JPY in the tradable share market
capitalization.

©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

21

1. Financial Highlights
2. Breakdown of Sales & Key Performance Indicators（Dispatching business of construction and plant engineers）

3. Breakdown of Sales & Key Performance Indicators（Dispatching and contracting business of machinery design and development engineers）

4. Major Topics from 1st Quarter Financial Results Announcement
5. FYE2022 Financial Forecast and Business Outlook
6. Returning Shareholders
7. Story of Value Creation©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

22

FYE2022 Financial Forecast• The weakening trend in demand for human resources is expected to bottom out in the 2nd half and move in apositive direction as a whole. As it is expected to return to a chronic shortage of engineers before the constructionindustry, the Company will further strengthen sales activities in the 2nd half and acquire as many engineers as
possible.
• In the 2nd half of FYE2022, the Company will continue to work to reduce the cost of sales ratio by raising charges
and reduce SG&A expenses.
（millions JPY）

FYE2021

1st Half
Net sales

FYE2022Full-year

7,271

14,836

Cost of sales

5,255

Ratio to sales

72.3％

1st Half

YoY(amount)

7,402

+130

10,539

5,168

71.0％

69.8%

YoY

Full-year(revised forecast
on Aug. 11)(%)(amount)

(%)

+1.8％

16,943+2,106+14.2％△87△1.7％

11,788+1,248+11.9%－△2.5pts

69.6％－△1.4pts

Gross profit

2,015

4,297

2,233

+218

+10.8％

5,155

+857

+20.0％

Ratio to sales

27.7％

29.0％

30.2%

－

+2.5pts

30.4％－+1.4pts

SG&A expenses

1,483

2,859

1,601

+117

+7.9％

3,500

+640

+22.4％

Ratio to sales

20.4％

19.3％

21.6%

－

+1.2pts

20.7％－+1.4pts

Operating profit

531

1,437

632

+100

+19.0％

1,655

+217

+15.1％

Ratio to sales

7.3％

9.7％

8.5%

－

+1.2pts

9.8％－+0.1pts

Ordinary profit

534

1,439

630

+96

+18.1％

1,657

+217

+15.1％

Ratio to sales

7.3％

9.7％

8.5%

－

+1.2pts

9.8％－+0.1pts

404

1,009

328

△76

△18.9％

1,077

+67

+6.7％

5.6％

6.8％

4.4%

－

△1.2pts

6.4％－△0.4pts

Earnings per share (JPY)

42.92

106.74

34.38

△8.54

－

112.76＋6.02－

Dividend per share (JPY)

10.00

37.50

10.00

－

－

40.00

2.50

－

Profit attributable to owners of parent
Ratio to sales※ The Company conducted a 2-for-1 share split on April 1, 2021. The Company assumes that the share split occurred at the beginning of the period in order to calculate earnings
per share for FYE2021.
©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

23

Business Outlook▪COPRO-ENGINEERD. Co., Ltd.（Dispatching business of construction and plant engineers）

Orders received

Urban redevelopment projects, which had been halted by Olympic demand, are expected to move into the 2nd half, and thenumber of projects is expected to recover due to the stabilization of the spread of COVID-19. On the other hand, caution
continues to be required as the postponement or revision of private-sector construction plans may be anticipated depending on
trends in the spread of infections.

Recruitment

As the number of job seekers is expected to increase in line with the slowdown in the expansion of COVID-19, in addition tostrengthening the recruitment of experienced engineers, the Company will work to secure excellent human resources bypromoting the unlimited hiring of inexperienced employees.

Retention

The effect of the change to a system in which sales employees consistently conduct sales to temporary staffing destinations andafter-sales follow-up for engineers is appearing in the number of retirements, and the Company will continue its efforts in 2nd half.
Further, in addition to expanding training for inexperienced employees, the Company will strengthen its sales efforts to cultivate
target customers, which will lead to an increase in the contract renewal ratio and retention rate.

Charge-up
negotiation

Steady progress in revising contract amount. While continuing to improve the contract renewal ratio through deeper cultivation ofbusiness, it will accumulate recurring charge-ups.

▪ATMOS CO., LTD.（Dispatching and contracting business of machinery design and development engineers）

Orders received

In the automotive industry, orders are expected to increase by expanding new domains through CASE response and promoting
outsourcing of existing services. At the same time, there are signs of a recovery in the aircraft industry and the machine toolindustry, where orders declined last year due to the impact of the spread of COVID-19. Based on the expectation that the volumeof orders will gradually recover, the Company will expand the scope of operations and recruitment nationwide to increase thenumber of projects and applicants.

Recruitment

Demand for experienced engineers continues to be high. The number of job seekers is also increasing, ranging from those withexperience to those with less experience, and the Company expects a favorable hiring environment.

▪VALUE ARK CONSULTING CO., LTD. (System engineering services business (SES))
Impact on
consolidated
forecast

Starting with 3rd quarter results, the Company plans to consolidate its profit and loss. The impact on the consolidated earnings
forecasts for FYE2022 is expected to be negligible at this time.

©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

241. Financial Highlights
2. Breakdown of Sales & Key Performance Indicators（Dispatching business of construction and plant engineers）

3. Breakdown of Sales & Key Performance Indicators（Dispatching and contracting business of machinery design and development engineers）

4. Major Topics from 1st Quarter Financial Results Announcement
5. FYE2022 Financial Forecast and Business Outlook
6. Returning Shareholders
7. Story of Value Creation©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

25

Returning Shareholders
Acquisition of treasury stock (up to 350 million JPY)
for the period from September 15 to December 30, 2021

Total return ratio expected to be approximately

68％✓ Annual Dividend for FYE2022 is expected to be 40, an increase of +2.5 JPY from the previous period✓ Expecting a third consecutive year of dividend increases from listing on the stock market
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0

68.0％
70.0%

✓ Forecast dividend payout ratio of 35.5%

60.0%
50.0%
35.5%

35.1%
26.1%
20.2%

18.5%
30.0 JPY

15.0 JPY

21.0 JPY
1.0

20.0

30.0%
40.0 JPY

37.5 JPY
2.5

20.0%
10.0%

30.0

25.0

0.0%
-10.0%

20.0

15.0

40.0%

10.0

10.0

10.0

FYE2020

FYE2021

FYE2022(forecast)-20.0%-30.0%

FYE2018

FYE2019

Ordinary dividend (interim)

Ordinary dividend (year-end)

Dividend payout ratio(％)

Total return ratio(％)

Commemorative dividend (year-end)※ Total return ratio ＝ (Total dividends + Total share buybacks) ÷ Profit attributable to owners of parent※ FYE2019 is commemorative dividend for listing, and FYE2021 is commemorative dividend for changing to 1st section of TSE and NSE.
※ Dividends per share have been retroactively adjusted to reflect the impact of the 2-for-1 share split, which was effected on April 1, 2021.

©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

26

1. Financial Highlights
2. Breakdown of Sales & Key Performance Indicators（Dispatching business of construction and plant engineers）

3. Breakdown of Sales & Key Performance Indicators（Dispatching and contracting business of machinery design and development engineers）

4. Major Topics from 1st Quarter Financial Results Announcement
5. FYE2022 Financial Forecast and Business Outlook
6. Returning Shareholders
7. Story of Value Creation©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

27

Purpose⚫

We will create a dynamic "human-drive" society in which people move by providing society with the best ways towork and the best workers.

Our Purpose

The Best Ways to Work and the Best Workers
Business
Partners
Peopleliving insociety

Shareholders
Investors

Clientcompanies

Job seekers

Management
staffs©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

Engineers28Unique Strengths and Non-Financial Capital⚫

Our sales abilities and technological abilities, backed by our human resources, provide us with speedy matching.
Non-Financial Capital

COPRO Group's Strengths

Power within the Group
Human capitalManagement
Engineers
staffsHumanstrengths of
COPRO

290people⚫

Speedy sales activities andability to make proposals inline with needs

Manufacturing Recruit
capitalmentsystemIntellectual

capital

Sales
bases

Power outside the Group
Social capital
Strong relationships of trust
between job seekers and clientcompanies

Speedy Matching

Human 2,086people
strengths ⚫ Skilled engineersJob
seekers⚫

In-house recruitment website

Gen-Kyari

Number of applicants per year
(mid-career hires)

17,015FYE2021 results

Marketingabilities toexpandbusiness

Nationwide sales network of 11
branches

Domestic andoverseasbases
2 subsidiaries in ASEAN
supporting
business
Training
In-house training facilities
models,facilities
3 Kantokuno-Tanes
training
facilities, andService Mechanical design and development
IT systems
supportData centers, R&D

Clientcompanies⚫

Number of client companies

As of March 2021⚫

428

Technologicalabilities ofthe engineer
supportplatform

COPRO Engines

Number of acquired job offers

As of March 2021

11,933

Promotion of in-house DX（Distribution of smartphones 100%）

Corporate core system©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

29

Group's Vision "Engineer Support Platform"⚫

The Engineer Support Platform supports engineers' diverse work styles.

Engineer Support Platform

Search & Select

Work

1

Job seekers,
Includinginexperienced
employees

The Best Ways to Work⚫

Job change⚫

Career advancement⚫

Area change⚫

Side business, Freelance

Careeradvancement

Link

2

Variety of Career Options⚫
⚫

⚫

The Best workers

Try out
strengths
outside theGroupConstruction and plant engineers
Machinery design and development
engineers
IT and system engineers

3

Best Opportunity to Learn⚫

Improve skills

Training for inexperienced
employees⚫

CAD training⚫

Basic/Specialized Education

Learn

Expand the potential©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

30

Creation of Values⚫

We will contribute to the creation of a society in which engineers can continue to refine their technologies for their
lifetime and thrive by providing the best working ways and the best workers.
InputsDomestic andoverseas
sales bases
and researchfacilities

Business Model

The Best Ways to Work and the Best Workers

Net sales
Operating profit

SalesabilityHumanstrengths of
COPRO

Economic Value

Recruitment
ability

Relationshipsof trust withdestinationcompanies

Provide the following value to the clientcompanies by matching personnel andjobs and providing opportunities toacquire skills.
⚫

Matching
ability
Occupancy rate⚫

Creation of job satisfaction⚫

Realization of diverse work styles⚫

Realization of lifelong active
society

Retention rate

Human development
and follow-up ability

Provide the following values to society andthe environment by continuing to provide
high-level engineers.

Diversity of Human
Resources⚫

Improving economic productivity⚫

Mobility of human resources① Ratio of inexperienced
employees⚫

② Ratio of female employees⚫

③ Ratio of elderly employees④ Ratio of foreign employees⚫

⚫

©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

Eliminate the shortage ofengineers

Provide the following value to job
seekers and engineers by creating
employment opportunities for all people
and providing them with opportunities toacquire skills.

Contract renewal ratio

Ability toretain engineers

Environmental and Social Value

Maintaining sustainable industries
and infrastructure
Promoting technological innovation,
including the environment
Reduction of environmental impactsof each business site
Reducing resources consumption

31

Towards Sustainable Growth⚫

Our long-term targets are net sales of 1,000 billion JPY and operating profit of 10 billion JPY. We aim to be the No. 1
corporate group in the engineer dispatch industry, which continues to be selected by both engineers and clientcompanies.

Changes in the business environment

Society we aim for⚫

Declining labor force population⚫

Climate change and decarbonisation⚫

Work style innovation⚫

Revision of the dispatch law⚫

⚫

Shrinking or expanding theconstruction market
Automation of construction sites

Long-term growth image
FYE2030

Growth Strategy for Business Expansion⚫

⚫
⚫

Opportunities⚫

⚫

⚫

Global business

Expansion of dispatch of plant engineers

SES busuiness

Promoting the dispatch of machinery design anddevelopment technicians

Dispatch business of machinery
design and development engineers
Dispatch business of plant engineers⚫

Promotion of SES business⚫

Developing global business

Increase in employment
opportunities due to revitalization of
construction⚫

M&A strategy and promotion of new businesses

Increased employment
opportunities for operators andmachine designs due to automation

M&A strategy & New businesses

To further expand the share of the constructionengineer dispatch market

Increase in employment
opportunities due to expansion of
the temporary staffing market

Dispatch business of constructionengineersSalesability
Recruitment
abilityLong-term vision
Matching
ability

FYE2030
Performance Targets
Net sales

Risks

⚫

⚫

Decrease in sales due to restrictions
on industries, operation hours,
overtime hours, and breached days,
etc. due to revisions to the
Temporary Staffing Law
Decrease in sales due to increased
competitiveness of competitors

Society in which allengineers can continue
to refine theirtechnologies
throughout their lives

Ability toretain engineers

Human development
and follow-up ability

Reinforcement of Business Infrastructure⚫

⚫

Promotion of measures to improve the retention
rate of dispatched engineers

JPY100billion
Operating profit
JPY10billion

To build the No.1
corporate group in theengineer dispatch
industry, which
continues to be
selected by bothengineers and clientcompanies

SDGs Initiatives

Growth through contributions to a sustainable
society©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

32

Medium-term Management Plan to Be Announced
Medium-Term Management Plan “COPRO Group VISION 202X" (tentative)

Scheduled to be announced around spring 2022
Aiming to achieve sustainable growth and medium-to long-term improvement in corporate value,scheduled to announce a medium-term management plan with 3 to 5 years as the initial year of FYE2023

FYE2030
Formulate a medium-term plan
for achieving the long-term growth target for FYE2030

G
r
o
w
t
h

Net sales 100 bn. JPY
Operating profit 10 bn. JPY

FYE202X

FYE2023

Fiscal year
©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

33

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.

©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

34