Fiscal Year Ended March 31, 2021

Financial Resultsfor FY2020
May 14, 2021

COPRO-HOLDINGS. Co., Ltd.

Contents
1. Financial Highlights
2. Key Performance Indicators
3. Breakdown of Sales

4. Forecasts and Major Initiatives for FY2021
5. Returning Shareholders
6. Appendix©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

11. Financial Highlights

2. Key Performance Indicators
3. Breakdown of Sales
4. Forecasts and Major Initiatives for FY2021

5. Returning Shareholders
6. Appendix©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

2

Consolidated Financial Results
Net sales increased for 15 consecutive years due to an increase in the number of engineers.
Phase income decreased mainly due to an increase in cost of sales ratio under the "equal pay for equal
work" system.
（millions of yen）

Year-on-year

FY2019FY2020Net sales

13,122

14,836+1,713+13.1％

Cost of sales

8,746

10,539+1,792+20.5％

66.7％

71.0％

－

+4.3pt

4,376

4,297

△78

△1.8％

Ratio to sales

33.3％

29.0％

－

△4.3ptSG&A expenses

2,783

2,859

+76

+2.7％

Ratio to sales

21.2％

19.3％

－

△1.9ptOperating profit

1,592

1,437

△155

△9.7％

Ratio to sales

12.1％

9.7％

－

△2.4ptOrdinary profit

1,585

1,439

△145

△9.2％

Ratio to sales
Profit attributable to owners ofparentRatio to sales

12.1％

9.7％

－

△2.4pt

1,084

1,009

△74

△6.9％

8.3％

6.8％

－

△1.5ptRatio to sales
Gross profit(Amount)(%)©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

3

Consolidated Operating Profit
Consolidated Operating Profit

1,437million yen
YOY △155 million yen, △9.7％（millions of yen）

Main Change Factors▪Net sales✓ Increased by +13.1% YOY due to an increase in thenumber of engineers mainly due to the contribution
from the opening of branches.

▪Cost of sales✓ Engineer’s salary base was raised in response toequal pay for equal work system, which went into
effect in April 2020.
✓ Standby labor cost due to increased hiring of new
graduated and engineers.
✓ Standby labor cost due to continuing adoption under
COVID-19.
✓ Payments for special holidays accompanying homestandby for engineers suspected of being infectedwith COVID-19.

▪SG&A expenses✓ One-time costs for future growth (123 million yen)・Sales consulting, core system renewal expenses
・Investigation costs for full-fledged global business・Expenses of safety measures to prevent COVID-19
・Changing costs to 1st section of TSE and NSE✓ Curtailment of operating expenses by promoting online
meetings in response to the outbreak of COVID-19.

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

4

Quarterly Financial Results
Began strengthening charge-up negotiations in February 2021, positioning improving cost of sales
ratio as a top priority.
Promoting negotiations for gradual improvement from the first quarter of FY2021.
（millions of yen）

1Q
Results

Previous
quarter

2Q
YoY

Results

Previous
quarter

3Q
YoY

Results

Previous
quarter

4Q
YoY

Results

Previous
quarter

YoY

Net sales

3,606

3,023 +19.3%

3,664

3,149 +16.4％

3,796

3,376 +12.5％

3,768

3,573

Cost of sales

2,645

2,019 +31.0％

2,610

2,106 +23.9％

2,659

2,238 +18.8％

2,623

2,382 +10.1％

73.3％

66.8％

+6.5pt

71.2％

66.9%

+4.3pt

70.0%

66.3%

+3.7pt

69.6%

66.7%

+2.9pt

961

1,004

△4.3％

1,054

1,042

+1.1％

1,137

1,138

△0.1％

1,144

1,191

△3.9％

Ratio to sales

26.7％

33.2%

△6.5pt

28.8％

33.1%

△4.3pt

30.0%

33.7%

△3.7pt

30.4%

33.3%

△2.9ptSG&A expenses

762

705

+8.1％

720

670

+7.5％

711

673

+5.5％

664

733

△9.3％

Ratio to sales

21.1％

23.3%

△2.2pt

19.7%

21.3%

△1.6pt

18.7%

20.0%

△1.3pt

17.6%

20.5%

△2.9ptOperating profit

198

298 △33.6％

333

371 △10.3％

426

464

△8.2％

479

458

+4.7％

Ratio to sales

5.5％

11.2%

13.8%

△2.6pt

12.7%

12.8%

△0.1ptRatio to sales
Gross profit

9.9%△4.4pt

9.1%

11.8%

△2.7pt+5.4％©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

51. Financial Highlights

2. Key Performance Indicators
3. Breakdown of Sales
4. Forecasts and Major Initiatives for FY2021

5. Returning Shareholders
6. Appendix©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

6Retention Rate and Occupancy Rate
While temporary staffing demand remained at a high level, the number of retired engineers due to contract
expiration, who have joined the company for a period of about 1 to 2 years, increased due to a shift indemand from those with weak experience to those with experience in COVID-19.
The occupancy rate remained at 100% in real terms, excluding engineers, which takes paid leave.
Retention Rate for
FY2020 4Q

Occupancy Rate
at End of FY2020 4Q

YoY △3.9pt

YoY △2.3pt

70.9％

95.8％

100%
90%
80%

100%

75.9%

74.8%

99%

70.9%

97.7%

97.8%

98%

70%

97%

60%

96%

50%

95%

40%

94%

30%

93%

20%

92%

10%

91%

0%

98.1%

95.8%
94.4%

90%

FY2018FY2019FY2020FY2019FY2020

FY2020

FY2020

FY2020

4Q

4Q

4Q

End of 4Ｑ

End of 1Q

End of 2Q

End of 3Q

End of 4Q*Retention rate = Number of engineers at the end of the current quarter ÷ (Number of engineers 12 months ago+ Number of employees hired during 12 months) × 100©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

7

Number of Engineers Hired
The number of hires was in line with forecasts, and recruiting cost per engineer declined significantly due torestrained.
Experienced and inexperienced in the industry (89 new graduates plus 343 mid-career employment) eachaccount for 50%.
Number of Engineers
for FY2020

Breakdown of Experienced Occupations

865 engineers

OthersCAD

YoY △198 engineers

New graduates（engineers）

Plant

287
240

257

279

281
181

1Ｑ

2Ｑ

3Ｑ

FY2019Recruiting cost
per engineer

193 thousand yen

41
5％

231

4Ｑ

1Ｑ

2Ｑ

172

3Ｑ

4Ｑ

Facilities

Civil
engineering

FY2020Recruiting cost
per engineer

156 thousand yen

12
82 1％ 89
10％
10％

89
10％
68
8％

865
engineers343
40％

Inexperienced
in the industry

141
16％
Construction©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

8

Number of Engineers
The number of engineers increased for 15 consecutive years even under the outbreak of COVID-19.
Number of Engineers
at End of FY2020

2,020 engineers
YoY ＋36 engineers（engineers）
2,200

1,984 2,020

2,000
1,800

1,591

1,600
1,400
1,200
1,000
800
600
400
200
0

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

9

Contract Amount per Engineer by Years of Experience(monthly amount)
Due to a decline in the composition of engineers in the 1st year in line with the restraint in the numberof engineers hired, the company-wide average contract amount increased compared to the previous
fiscal year.
Note; From this publication, the contract amount has been changed from the basis of years of service at us to the basis of years of experience,
including before joining our company.

Ye a r - o n - y e a r
Companywide
average

FY2019Quarterly Trends

FY2020Companywide
average54.2 ➡ 54.6

4Q

1Q

54.4 ➡ 54.6

（ten thousands of yen）

（ten thousands of yen）
62.2 62.8
54.8 55.0

54.2 54.6

62.8 62.4 62.4 62.8

54.4 54.2 54.2 54.6

54.1 53.5 53.5

50.0 49.8
44.6 44.4

45.2

49.2 49.1 49.4 49.8

46.9
41.4

Company-wide

1st year

2nd year3rd-5th year

6th-10th year

average

FY2019 4Q

55.0

FY2020 4Q

11th year or

Company-widemoreaverage42.6

43.9 44.4

45.6 45.9

1st year46.6 46.9

2nd year

1Q

2Q

3rd-5th year

3Q

6th-10th year

11th year or more

４Ｑ

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

101. Financial Highlights

2. Key Performance Indicators
3. Breakdown of Sales
4. Forecasts and Major Initiatives for FY2021

5. Returning Shareholders
6. Appendix©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

11

Quarterly Sales Trends
In proportion to the number of engineers, quarterly sales have increased on a cumulative basis.
Quarterly Sales
1Q

4Q

3,606

3,768

➡

（millions of yen）

2,044

4,000

1,984

3,800

2,020

1900

1800

1,686

3,200
3,000

1,552

1700

1,591

1,483

2,800

1,378

2,400

2,457

2,616

2,824

2,920

2100
2000

1,763

3,400

2,200

2,054

1,879

3,600

2,600

2,002

3,023

3,149

3,376

3,573

3,606

3,664

3,796

3,768

1600
1500
1400
1300

2,000

1200
1Q

2Q

3Q
FY2018

4Q

1Q

2Q

3Q

4Q

1Q

2Q

FY2019Quarterly Sales(millions of yen)

3Q

4Q

FY2020

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

12

Sales by Industry
Net sales increased in all industries.
Civil engineering's net sales increased, driven by increased orders in rural areas, and plant's net
sales also expanded as a result of progress in acquiring customers.
（millions of yen）
Construction

Civil engineering

Facilities

Plant

4,496 million yen

2,745 million yen

3,698 million yen

2,202 million yen

YoY +7.4％

YoY +20.0％

YoY +13.3％

YoY +16.9％

1,144
1,081
973

1,115 1,128

1,155
1,097

514

551

594

625

705

691

641

708
734

781

836

918

FY20191Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

931

923
424

FY2020FY2019FY2020CAD

Others1,208 million yen

485 million yen

YoY +6.4％

YoY +33.2％

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2019

460

493

505

547

546

555

553

279

285

295

282

280

313

136
87

84

90

101

3Q

FY2019

4Q

1Q

2Q

3Q

FY20204Q

91

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2019FY2020

30.3%

18.5%

24.9%

14.8% 8.1%

155

2.8%

FY2019

31.9%

0%
2Q

FY2019FY2020

3.3%

331
102

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Sales Composition Ratio by Industry
FY2020

1Q

926

988

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

273

911

17.4%

24.9%

14.3% 8.6%

40%

60%

80%

Civil engineering

Facilities

20%

Construction

Plant

CAD

FY2020©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

100%
Others13

Sales by Business Partner and Area
In addition to Takamatsu Branch, which opened in October 2019, Shizuoka Branch, Niigata Branch, andKitakyushu Plant Branch, which opened in 2020, contributed, net sales increased mainly in regional areas.
Super General Contractor
Net Sales

3 Major Metropolitan
Areas Net Sales

2,903 million yen

10,272 million yen

YoY +2.4％

YoY +9.6％（millions of yen）

（millions of yen）

13,122＋16.0％

14,836
13,122
11,933(80.4％)

10,288(78.4％)

9,375(71.4％)

＋2.4％
2,834
(21.6％)

3,747(28.6％)＋21.8％＋9.6％

14,8364,564(30.8％)

10,272(69.2％)

2,903(19.6％)©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

14

1. Financial Highlights

2. Key Performance Indicators
3. Breakdown of Sales
4. Forecasts and Major Initiatives for FY2021

5. Returning Shareholders
6. Appendix©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

15

FY2021 Forecasts
FY2021 is expected to return to a path of higher sales and profits due to an increase in net sales due to anincrease in the number of engineers and a decrease in cost of sales ratio by charge-up negotiations.
However, profits are expected to decrease in 1st Quarter and 1st Half due to M&A-related expenses
associated with the acquisition of ATMOS CO., LTD..
*ATMOS CO., LTD., which COPRO acquired all shares on April 30, 2021, is expected to become a consolidated
subsidiary from 1st Quarter. COPRO is currently reviewing the impact on the earnings forecast and plans toannounce it as soon as it is finalized.
（millions of yen）

FY2020Net sales
Cost of sales
Ratio to sales
Gross profit
Ratio to sales
SG&A expenses
Ratio to sales
Operating profit
Ratio to sales
Ordinary profit
Ratio to sales
Profit attributable toowners of parent
Ratio to sales

FY2021 (forecast)

YoY

Full year

1st half

7,271
5,255
72.3％
2,015
27.7％
1,483
20.4％
531
7.3％
534
7.3％

14,836
10,539
71.0％
4,297
29.0％
2,859
19.3％
1,437
9.7％
1,439
9.7％

7,446
5,220
70.1％
2,226
29.9％
1,739
23.4％
487
6.5％
486
6.5％

+174
△35
－
+210
－
+255
－
△44
－
△47
－

+2.4％
△0.7%
△2.2pt+10.4％+2.2pt+17.2％+3.0pt△8.4％△0.8pt△8.9％△0.8pt16,343
11,327
69.3％
5,016
30.7％
3,402
20.8％
1,614
9.9％
1,614
9.9％

+1,506
+787
－
+718
－
+542
－
+176
－
+174
－

+10.2％+7.5％△1.7pt+16.7％+1.7pt+19.0％+1.5pt+12.3％+0.2pt+12.1％+0.2pt

404

1,009

315

△89

△22.2％

1,048

+38

+3.8％

5.6％

6.8％

4.2％

－

△1.4pt6.4％－△0.4pt(Amount)(%)

Full year

YoY

1st half(Amount)(%)©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

16

Major KPIs Forecasts
Cost of Sales Ratio

69.3％（YoY △1.7pt）▪Continuing charge-up negotiations and aim to incremental cost of sales ratio to improve.

Number of Engineers

2,440（YoY +420）▪In addition to increasing recruitment, COPRO will improve retention rate by proposing
matching using the new backbone system.
▪Abolished the position of Trust representative, which provided after-sales follow-up forengineers, and changed to a system in which sales representatives conduct 1-stop sales andafter-sales follow-up.

Number of Engineers Hired 1,200（YoY +335）▪Increase recruiting expenses. Strengthen recruitment with experienced engineers as the main
target.
▪Full renewal of COPRO's recruitment website “Gen-Kyari" (April 2021).
©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

17

New Core System
New Core System Started operation in April 2021

Matching

Achieve optimal matching by matching
project information accumulated in the
new core system with human resources
information

New
Core System

Estimate

Invoice

Contract

Attendance

Number of engineers▪Promote productivity improvement in branch office work and utilize the new core system for matching.

Restrain growth in administrative
personnel expenses＝ Expect improvement in
operating profit ratio

Net sales
Administrative
personnel
expenses(previous)

Administrative
personnel
expenses(after new coresystem operation)

By consolidating information into
the new core system, it isexpected to reduce the numberof clerical work processes atbranches by approximately 40%

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

18

Global Business
Entry into Vietnam

Established COPRO VIETNAM CO., LTD. on
April 1, 2021

▪Partnering with local educational institutions to recruit advanced foreign human resources who want
to work in Japan.
▪Brokerage of human resources to Group company COPRO-ENGINEERED. Co., Ltd., and dispatching
and introduction to construction general contractors and plant engineering companies in Japan,
where there is a shortage of human resources, is planned.
▪Considering dispatching U-turn to Japanese general contractors, which have expanded into Vietnam,in the future.

Dispatching/introduction

Brokerage

COPRO VIETNAM

COPRO-ENGINEERED

Recruiting advanced
human resources

To Japanese companies
with labor shortages

Construction general contractor
Plant Engineering Company©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

19

Acquired Shares of ATMOS
ATMOS CO., LTD.

COPRO acquired all shares on April 30,
2021, making it a wholly owned subsidiary▪ATOMOS, which is engaged in the dispatch of machine design engineers, joined COPRO Group.
Company Outline
Company name

ATMOS CO., LTD.

Head office

1-24-20 Meieki-minami, Nakamura-ku,
Nagoya, Aichi

Description ofbusiness

Dispatching business of machinery
design engineers, etc.

Share capital

35 million yen

Foundation

June 2006

Fiscal year-end

February

Number of
employees¥

119 (including 115 engineers)

Business Details
Dispatching development and design engineers mainly to major
manufacturers in Japan

Major Clients✓ JAMCO CORPORATION✓ Panasonic Corporation✓ Okuma Giken Co., Ltd.

✓ OMRON Corporation✓ YANMAR AGRIBUSINESS CO., LTD.

✓ HOSHIZAKI CORPORATION✓ YANMAR ENERGY SYSTEM CO., LTD. ✓ AISHIN CORPORATION✓ DAIKIN INDUSTRIES, LTD.

✓ Makita Corporation✓ Toyota Production Engineering✓ TOSHIBA LIFESTYLEPRODUCTS & SERVICESCORPORATION

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

20

Synergy Effect with ATOMOSAim to improve the stability and growth potential of the Group's overall revenues by diversifying its businessin the engineer dispatch business area, and further accelerate growth in the machinery design engineer
dispatch business by utilizing COPRO Group's management resources.

▪Pursuit of engineer dispatch business✓ Further expand the high-value-added
engineer dispatch business by adding
machinery designs to construction andplant.
▪Sharing human resources✓ Expanding career plan options forconstruction and plant engineers.
▪Sharing education and training expertise✓ Further expansion of human resources
development.

▪Utilization of management resources✓ Sharing recruitment capabilities to hire
more than 1000 people annually,
including the company's recruitment
website.
✓ Expand sales channels by sharing sales
networks of 18 branches nationwide.
▪Utilization of a Vietnamese subsidiary✓ Acceptance of advanced overseas
human resources through COPROVIETNAM CO., LTD..

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

21

Statement to TSE Market Reorganization
Plan to select to move to the Prime Market
Consider all kinds of corporate actions as options, aiming to meet the continued listing requirements✓ Increase corporate value by expanding
corporate size and business areas andImproving
improving profitability through M&A and
Corporate Value
other growth investments.

Returning
Shareholders

Prime Market’s continued listing requirements✓ While considering the balance between strategic
investments for growth and shareholder returns,
continue stable dividends with a target
consolidated dividend payout ratio of 30% or
more, and maximize shareholder profits.

Our compliance status

Number of shareholders

At least 800 shareholders

2,398 shareholders（As of March 31, 2021）〇

Number of tradable shares

At least 20,000 units

39,737 units（As of March 31, 2021*）〇

Tradable share market capitalization

At least JPY 10 bn.

JPY 5.05 bn.（As of May 13, 2021）

×

Trading value

At least daily JPY avg. 20 mn.

Tradable share ratio

At least 35％

JPY 110 mn. (daily average from January 6 to
December 30, 2020)
39.7％（As of March 31, 2021）〇〇*The number of tradable shares as of March 31, 2,021 is multiplied by 2 times in accordance with the 2-for-1 share split conducted on April 1, 2021.

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

22

1. Financial Highlights

2. Key Performance Indicators
3. Breakdown of Sales
4. Forecasts and Major Initiatives for FY2021

5. Returning Shareholders
6. Appendix©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

23

Shareholder Return Policy
Maintain stable dividends with a target consolidated dividend payout ratio of 30% or more, while paying
attention to the balance with investments that will contribute to future business expansion.
FY2021(forecast)
Dividend Payout Ratio

FY2021(forecast)
Dividends per Share

36.5％
（％）
40

(Annual)35.1 %（yen）
45

36.5 %

40
35

35

37.5

40

25

30

30

30

30

21

25

26.1%

20

25
20

40.0 yen

15

20

15

18.5 %

10
5

15

1

0

15
10
5
0
FY2018FY2019FY2020

FY2021(forecast)

2.5

20
10

10

10
FY2021FY2017FY2018FY2019FY2020

Annual total

15

21

30

37.5

40

Ordinary dividend (year-end)

15

20

20

25

30

Commemorative dividend

0

1

0

2.5

0

Ordinary dividend (interim)

0

0

10

10

10

(forecast)*

FY2018 is commemorative dividend for listing, and FY2020 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.

24

Stock Information
The Ten Largest Shareholders

Distribution of the Shareholders（As of March 31, 2021）（As of March 31, 2021）

No.
Japanese individuals,
treasury shares andothersOther
Japanese
corporations

35.7%

42.6%

1

RITAMEKO. Co., Ltd.

2

Kosuke Kiyokawa

3
4
5
6

Foreigninstitutions andindividuals

6.6%

15.1%

Japanese financial
institutions andsecurities companies

Other Japanese corporations
Japanese financial institutions and securities companies
Foreign institutions and individuals
Other Japanese corporations

Name of shareholders

Custody Bank of Japan, Ltd.（Trustaccount）
The Nomura Trust and Banking Co.,
Ltd. (Trust account)
The Master Trust Bank of Japan, Ltd.
（Trust account）
BNP PARIBAS SECURITIES SERVICESLUXEMBOURG/JASDEC/FIM/LUXEMBOURG FUNDS/UCITS ASSETS

Shareholdings(shares)(%)

2,100,000

44.0%

604,716

12.7%

268,800

5.6％

170,400

3.6％

157,100

3.3％

140,100

2.9％

7

GOLDMAN SACHS INTERNATIONAL

79,7001.7％

8

Individual shareholder

60,0001.3％

9Morgan Stanley MUFG Securities Co.,Ltd.

57,5001.2％

10Individual shareholder

50,0001.0％

3,668,316

77.3%

Total

Note: All percentage figures are calculated by the total number of shares issued andoutstanding excluding treasury stocks (223,167 shares) held by the Company.
©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

25

1. Financial Highlights

2. Key Performance Indicators
3. Breakdown of Sales
4. Forecasts and Major Initiatives for FY2021

5. Returning Shareholders
6. Appendix©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

26

Company Outline
Company name

COPRO-HOLDINGS Co., Ltd.

Representative

Kosuke Kiyokawa, CEO

Head office

Dai Nagoya Building 27F , 3-28-12 Meieki,
Nakamura-ku, Nagoya, Aichi 450-6427

Foundation

October, 2006

Fiscal year-end

March

Stock listings

First Section of the Tokyo Stock Exchange and the
Nagoya Stock Exchange

Stock code

7059

Group
companies

Description ofbusiness
Number of
employees

Domestic
subsidiaries• COPRO-ENGINEERED. Co., Ltd.
• ATMOS CO., LTD.

Overseassubsidiaries• COPRO GLOBALS PTE. LTD.
• COPRO VIETNAM CO., LTD.

• Dispatching and recruitment consulting services
centered on the construction industry• Dispatching business of machinery design
engineers, etc.

Kosuke Kiyokawa, CEO

Born in Aichi, Japan on October 16, 1977.
After graduating from Nagoya Future TechnicalCollege, he worked as a site supervisor in a local
construction firm for two years. Then after five
years working in sales for a leading outsourcing
company and a stint as president of a groupaffiliate of the company, he launched COPROENGINEERD. Co., Ltd. in 2006.

2,280(as of March 31, 2021, incl. temporary staff on consolidated basis）©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

27

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

28

Corporate History▪Founded in Nagoya in 2006.
▪Shifted to a holding company structure capable of aggressively and flexibly promoting growth strategies
in 2015.
▪Listed on the Mothers and the Centrex in March 2019, and changed to the 1st Section of the Tokyo
Stock Exchange and the Nagoya Stock Exchange in September 2020.

Company start-up Shifted to a holding company
structure
Trustee Crew Co., Ltd.
（Naka-ku, Nagoya）

2006

Established newly
COPRO-ENGINEERED. Co., Ltd.
through a corporate split

2008

Changed of stock market listing
to 1st section of TSE/NSE

TSE Mothers
NSE Centrex

2015

2019
Mar.

2016

Changed of company name Relocation of
COPRO-ENGINEERED. Co., Ltd.
head officeNakamura-ku, Nagoya(Dai Nagoya Building)

2007

2009

2012

Yokohama
Branch

SapporoBranchFukuoka Hiroshima
BranchBranch2006
NagoyaBranch

2014

2008

2011

2013

Tokyo
BranchOsaka
BranchSendai
BranchAcquired all sharesof ATMOS CO., Ltd.

Share listing

2017

2020
Apr.

Established COPROGLOBALS PTE. LTD.
in Singapore
2018

2021
Apr.

2020
Sept.

2020

Established COPROVIETNAM CO., LTD.

2020

Chiba Branch Niigata Branch
Omiya Kanazawa
Shizuoka Branch
Branch Branch2019 Kitakyushu Plant BranchTokyo Plant Branch,
Nagoya Plant Branch, Osaka Plant Branch
Takamatsu Branch

As of March 2021

１８ Branches

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

29

Trends in Net Sales and Number of Engineers
since Foundation
Aim to increase net sales for the sixteenth consecutive terms and record-high net sales for FY2021.
（hundreds ofmillions of yen）

（engineers）

2,400

2,440

2,000

Stock-type business, in which sales
accumulate in proportion to thenumber of dispatched engineers

1,800⇒ Stable sales growth

2,200

1,984

2,020

163

140

131

1,600

120

108

1,400

180
160

148
1,591

200

100

1,200
1,000

80

800

60

600

40

400

20

200

0

0
FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021(forecast)©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

30

Business Model
Operates a dispatch business specializing in the engineer business area.
COPRO-ENGINEERED operates a engineer dispatch business and recruitment business for construction
companies and plant engineering companies. Atmos is engaged in the business of dispatching machine
design engineers to the development and design divisions, mainly in major manufacturing industries.

Our Engineers’ Services in theConstruction Industry

About Dispatch Business▪Their principal work tasks are conducting 1) process
management, 2) safety management, 3) quality
control, 4) and cost management.

Engineers
Employment
contracts▪By full-time employees of generalcontractors▪Jobsite supervision

Work instructions
Provision of services
Supervisors

Provider of
dispatching services

Client company

Worker dispatch
contracts

Construction
managers

Workers（scaffolders, plasterers,
others）▪By the engineers provided
by the COPRO Group▪Process management atconstruction sites▪Realm of workers; onsite work
▪Dispatches of certain
workers are prohibitedby the Worker
Dispatching Act©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

31

Long-term Growth Image✓✓✓✓

Step 4
Step 3
Step 2
Step 1

M&A strategy and considering new businesses
Global business advancement
Increase market share for plant engineer dispatches
Further deepening in the construction engineers dispatch market

Step 4
Net sales JPY 10 bn.
Operating profit JPY 1 bn.
Step 3
Net sales JPY 10 bn.
Operating profit JPY 1 bn.

FY2029Results Target
Net sales

100bn.

Step 2
Net sales JPY 20 bn.
Operating profit JPY 2 bn.

JPY

Operating profit

10bn.

JPY

FY2029(24th period)
Results ImageFY2019(14th period)
Net sales JPY 13.1bn.
Operating profit JPY 1.5bn.

Exploration inbusiness field

Step 1
Net sales JPY 60 bn.
Operating profit JPY 6 bn.

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

32

Business Environment Supporting Growth
The amount of construction investment has started to increase from 2011. After the Tokyo Olympic Games,
due to large-scale projects such as the Japan’s Superconducting Maglev and the Osaka Expo, demand forredevelopment, infrastructure development, and national resilience, it is expected to increase steadily.
On the other hand, the number of construction workers peaked in 1997 and was on a declining trend, andhas leveled off in recent years.
（trillions of yen）
66.2
70
61.3
56.8

60
653
50
40

632

618

53.7 52.8
51.6 51.3
604

584

568

56.6

58.7

（ten thousands of people）
800
65.4
63.4
63.2
61.3
700

48.3 47.5

47.7 48.2
43.0 41.9 42.1 42.4

560

554

541

600
522

30

504

502

503

500

507

502

495

498

503

499

497
500

20
400
10
0

300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Construction investment

Number of construction workers(Source)•
Construction Investment: Outlook for Construction Investment by the Ministry of Land, Infrastructure, Transport and Tourism (announced on October 12, 2020)•
Number of construction workers: Ministry of Internal Affairs and Communications, Labor Force Survey©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

33

Business Environment Supporting Growth
The construction industry is aging compared to the average for all industries, and there are fewer
young workers.
While 35.3% of workers will be forced to retire 10 years later, there is a shortage of young workers
who is 11.6% of them and will play a leading role in the future.
▪Percent distribution of construction workers by age group
Average for all industries (under 29)
Average for all industries (over 55)
Construction (under 29)
Construction (over 55)

Source; Ministry of Internal Affairs and Communications, Labour
Force Survey
Source; Japan Federation of Construction Contractors, Construction Industry Handbook 2020©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

34

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.

35