FY2020
Telephone Conference on
Financial Results

March 23, 2020

ARTNER CO., LTD.

1

Thank you very much for attending the FY2020 Telephone Conference on
Financial Results today.
I would now like to provide an overview of our financial results.

1

Contents

1. Company Overview

p. 3

2. Financial summary for FY2020

p. 19

3. Medium-Term Business Plan (fiscal year ending January 31, 2021
to fiscal year ending January 31, 2023)

p. 32

4. Forecast of financial results and dividend for FY2021

p. 39

5. Reference

p. 43

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

2Here is the content of today’s report.

2

Contents

1. Company Overview

p. 3

2. Financial summary for FY2020

p. 19

3. Medium-Term Business Plan (fiscal year ending January 31, 2021
to fiscal year ending January 31, 2023)

p. 32

4. Forecast of financial results and dividend for FY2021

p. 39

5. Reference

p. 43

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

3

Let’s start with an overview of our company.

3Company Motto / Management Philosophy / Origin of the Company Name

■ Company Motto
Pursuit of Mindset, Pursuit of Wisdom, Pursuit of Creativity■ Management Philosophy“Engineer Support Company”—We support our engineers’ dreams—
We aim for the happiness of all the employees and reflection within
the company by developing talents, fostering technologies,
and contributing to society through our engineers.

■ Origin of the Company Name
Art: Pursuing
superior quality

Partner: Responding tocustomer trust

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

4

4History (at the time of founding in 1953)■ Originally founded as Sekiguchi Kogyo Co., Ltd. in Amagasaki, Hyogo in 1953.
■ Manufactures and sells gloves for use in heavy industries in the Hanshin Industrial Region.
■ Reproduces and binds design drawings received from client companies, using whiteprinting
and blueprinting techniques.
■ Starts hiring employees with STEM degrees and offering a tracing service for design
drawings.
■ Our engineers visit frequently the design departments of client companies.
■ Demand increases from clients for tracing and other designing and development services.

Originally founded as
Sekiguchi Kogyo Co., Ltd.

Manufactures and sells
gloves for use in heavy
industries in the Hanshin
Industrial Region.

It reproduced and bounddesign drawings received
from the design departmentsof client companies, using
whiteprinting and blueprinting
techniques.

Starts hiring employeeswith STEM degrees andoffering a tracing service
for design drawings.

Our engineers visit thedesign departments of clientcompanies frequently.

Demand from clientcompanies increases for
tracing and other designingand development services.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

55History (1962 to present)■ 1962 Establishes Osaka Technology Center Co., Ltd. to offer design and development
services.
■ 1986 Worker Dispatching Act takes effect in Japan.
■ 1998 Changes the company name to Artner Co., Ltd.
■ 2007 Company stock listed on JASDAQ.
■ 2017 Celebrates the 55th anniversary of its founding. Stock listing moved to theSecond Section of the Tokyo Stock Exchange.
■ 2018 Stock listing moved up to the First Section of the Tokyo Stock Exchange.

Changes the company nameto Artner Co., Ltd.

Worker Dispatching Act
takes effect in Japan.

Establishes Osaka Technology
Center Co., Ltd.

Establishes Kanto Office.

Feb.: New MediumTerm Business Plan
starts.

Oct.: Company stock listed
on JASDAQ.

Jul.: Stock listing moved
up to the First Section of
the Tokyo Stock
Exchange.
Sep.: Celebrates the 55th
anniversary of its founding. /Oct.: Stock listing moved to theSecond Section of the Tokyo
Stock Exchange.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

6First, a brief history.
Our company was established in Osaka in 1962 as Osaka Technology Center Co.,
Ltd., a company that offered design and development services.
Then, in 1998, we changed the company name to Artner Co., Ltd., our current
name.
In 2007, our stock was listed on JASDAQ.
In 2017, on the 55th anniversary of our founding, we moved our stock listing to theSecond Section of the Tokyo Stock Exchange.
Then, the following year, in 2018, our stock listing moved up to the First Section of
the Tokyo Stock Exchange.

6

Business locations■ Headquarters■ Business bases■ Learning centers

Tokyo, Osaka
Yokohama, Utsunomiya, Osaka, Nagoya
East Japan, West Japan

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

7

Here are our current business locations.

7

West Japan LC (moved Jan. 15, 2019), East Japan LC (launched Mar. 2, 2020)[West Japan LC][East Japan LC]

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

8

Of those, we moved our learning center in West Japan to a larger space last year,
and we expanded and opened our learning center in East Japan as of March 2 thisyear.
To further improve our engineer training facilities, we are planning to improve ourlearning centers in West and East Japan.

8

Business Model■ Hire undergraduate and graduate students in the sciences (engineering, science andengineering, science, information engineering) as regular employees. After receiving
education and training, they are placed with our clients or the Company’s teams■ Our training staff are engineers with extensive experience■ Our clients include transportation equipment, electrical equipment, and precisionequipment manufacturers

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

9

Next, I would like to explain our business model.
Under our business model, we mainly hire fresh undergraduate and graduate
students with engineering, science and engineering, science, and informationengineering backgrounds. We educate them in-house, then place them in projects
with our major clients.
Every year, about 50% of the number of people expected to resign over a given
year is offset by standard job recruitment, in addition to supplemental and new
graduate recruitment.

9

Employment status at Artner■ Artner’s engineers with an “indefinite employment dispatch” status are hired
as regular employees, meaning that the employment relationship continues
even after a dispatching service ends.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

10

Now let’s look at the employment status of engineers at Artner. Engineers hired as
regular employees will be dispatched to work on projects for our clients whileremaining employed with us for an indefinite period of time as regular employees.
Since we also started conducting part of our business on a contractual basis, weare currently operating using two patterns of employment: temporary dispatch andcontractual dispatch.

10

Education and training flow
■ After entering the Company, employees undergo a process of “generaltraining,” “outside on-the-job training,” “basic training,” and “customized
training (practical training)” before their assignment to a manufacturer’s
project. After being assigned, employees take the “career support courses” todevelop their ability to provide services tailored to our clients.
New employee training

Entry into theCompany

Generaltraining

Outsideon-the-job
training

Basic
training

Customized training(practical training)

Placement

Career support
courses

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

11

Next, concerning our education and training process, the usual pattern is forengineers to undergo in-house training for three to six months after joining us,
after which they are assigned to client projects depending on their suitability for agiven project.

11

Technology fields[Machinery](Compatible fields)

Equipment and
Devices / Mechanisms /Resin and Sheet Metal /Analysis

Mechanicalengineers design
the mechanisms ofmachines withmoving parts using
2D/3D CAD tools.

[Electronics](Compatible fields)

Electrical Equipment/ Electronic Circuits /Semiconductors

Electronic engineers
design the circuitboards that form theheart of equipment
and devices and they
perform reliability
assessment work forelectronics.

[Software][Software](Compatible fields)(Compatible fields)

Control Software

Data Processing

Software engineersdevelop software for
operating electricalequipment with CPUs,
including vehicles
with increasingly
advanced
technologies and IoT
devices.

Software engineersdevelop systems andapps, web and open
systems, and package
software.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

12

Our engineers mainly specialize in one of four technology fields: machinery,electronics, control software, and data processing.

12

Our clients (by industry, in alphabetical order, standard company name used)■ Business with client companies in a wide range of industries for stable business[Transportation equipment]
Honda R&D, Nissan, Subaru,
Toyota, etc.

[Electrical equipment]
Canon, Daikin Rexxam
Electronics, Omron, Panasonic,
etc.

[Precision equipment]
Nikon, Shimadzu, Terumo, etc.

[Machinery]
JTEKT, Komatsu, Zuiko, etc.

[Information and communications]
Hitachi Solutions Technology, etc.

・ Companies listed on the first and second sections of their respective stock exchange, as well as
blue-chip, mid-sized companies
・ Transaction history with roughly 400 companies

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

13

Next, these are our main clients.
Our client base mainly consists of manufacturers working in the automobilecentered transportation equipment, electrical equipment, precision equipment,machinery, and information and communications industries, and we conduct ourbusiness by dispatching our mechanical, electrical, and software engineers to ourclients’ respective projects, or accepting orders for contractual work.

13

Products and systems related to design and development (1)Automobile

Machinery● Design anddevelopment of car
bodies● Reliability test

Electronics● Planning anddesign of ECU● Cable harness
power circuit

Eco cars

Software● Development ofcontrol software for
automobile meters,
in-car navigation
systems, anddashboard cameras

Machinery● Development of parking assist
system (e.g., automatic braking,accelerator control)●Development of lane keeping

Software●R&D of Driving Safety Support
Systems●Advance development of
automatic perimeter

SoftwareMotorcycle

Advanced safety vehicle (ASV)Electronics

Electronics●Development and●Development of eco ●R&D of nextgeneration fuel cells
evaluation of brake
car chargers●Hybrid system design control system●Development oflithium-ion batteries●Safety evaluation of●Development of drive automotive batteries
motors

Machinery

Electronics●Design and●Design of harnesses
development of frames
for electrical wiring● Design anddevelopment of exteriorparts●Design anddevelopment of electricmotorbikes

Software●Development of test
software● Development ofsoftware for digitalmetersCopyright(C) 2020 Artner Co., Ltd. All Rights Reserved

14

14

Products and systems related to design and development (2)Home electronics

Machinery

Medical devices

Electronics

Software●Design and●Prototyping,development of homeevaluation, andappliances (enclosure
analysis ofdesign, structural
smartphone circuitdesign)boards●Development of in●Circuit design for
car navigation system
AV equipment●Development ofenergy system●Development of

iPhone applications

Industrial equipment

Machinery● Design anddevelopment ofindustrial robots● Design of production
line for health products● Design anddevelopment ofmachine tools

Electronics● Development ofsemiconductor
lithographyequipment● Design anddevelopment of
production facilities

Machinery

Electronics●Development of PET ●Design anddevelopment ofsystemcontrol board for X●Improvement of
ray imaging system
blood transfusion and●Evaluationofinfusion sets, design
visceral fatof next set
measuring device

Software●R&D of walking
assist devices●R&D of pulse
measuring equipment

Aerospace machinery

SoftwareMachinery● Development ofapplications forsemiconductor
manufacturing
equipment●Development andvalidation of software for
automatic ticket gate

●Design and developmentof aircraft test jigs
●Development ofpassenger aircraft AV
equipment●Design and developmentof aircraft

Electronics●Development ofsatellite inspection
equipment

Software●R&D of next satellites●Development andevaluation ofsimulators for satellite
radio communicationequipment

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

15

15

The Company’s Groups corresponding to the work processes of manufacturers■ Upstream processes are markets less affected by economic conditions■ Emphasis on assignment to design and development projects (especiallyautomobile manufacturers)■ Placement in upstream processes results in higher unit prices of engineers

Work processes ofmanufacturers

Product
planning

R&D

Product development

Organizational
structure of Artner

High Value Group

Wide Value Group

This market segment requires
advanced technical skills anddesign, e.g., advanced
development, R&D.

This market segment covers awide range of design-related
tasks and corresponds to themajority of design anddevelopment work.

Production

Sales

Product Value Group
This market segment isassociated with quality
assurance, assembly andadjustment, and other aspects
of product quality andproduction.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

16

Next, while there are many other companies that also offer engineer dispatching
services, what sets Artner’s engineer dispatching services apart is our extremely
high proportion of engineers assigned primarily upstream in the development
process.
Our organizational structure consists of three groups: the High Value Group, which
covers R&D; the Wide Value Group, which covers product development; and theProduct Value Group, which covers production-related processes.
The breakdown of engineers is about 20% in the High Value Group, 60% in the
Wide Value Group, and 20% in the Product Value Group.
About 80% of the total number of engineers assigned to upstream processes aretaking part in upstream projects.
This is a hallmark of the sector in which our engineers actively operate.

16

Internal programs that can be chosen by engineers
Performance-basedsalary system
The High Value Group is responsible for the top-secret, high-level design anddevelopment projects of different manufacturers under a performance-based, generous
salary system.

Limited area system
Engineers with three years of work experience (from the fourth year of their career) canlimit their area of work to either the Kanto, Chubu, or Kansai region.

Internal recruitment
programEngineers may switch their affiliation between the HV Group and the WV Group, or
between the WV Group and the PV Group.

Job change
assistance program
If the engineer wishes to change jobs and the client/manufacturer to which the engineer
is placed wishes to officially hire the engineer, we support their career change.
We also provide support for engineers who wish to return to their hometowns to work.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

17

Because we divide our engineers into different groups, each group has its own
internal employee benefits or wage system, as well as distinct programs.
One especially unique program is the job change assistance program at thebottom of this list.
In recent years, the number of students and standard job applicants who find thisprogram appealing and apply has been increasing rapidly.
If an engineer wishes to change jobs and the client/manufacturer with which theengineer is placed wishes to officially hire the engineer, Artner will support theircareer change. This type of program is available.
Many of our employees make use of this program to make a U-turn (returning totheir hometown to work), I-turn (moving to the countryside to work), or J-turn(returning to a place near their hometown to work) in their careers.
This concludes the company overview.

17

Career paths of engineers■ We offer various career paths for engineers, such as “to hone their skills in ahigh-level environment and earn high compensation,” “to work in a particularregion,” “to eventually return to work in their hometowns,” and “to shift toemployment with a manufacturer.”

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

18

18

Contents

1. Company Overview

p. 3

2. Financial summary for FY2020

p. 19

3. Medium-Term Business Plan (fiscal year ending January 31, 2021
to fiscal year ending January 31, 2023)

p. 32

4. Forecast of financial results and dividend for FY2021

p. 39

5. Reference

p. 43

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

19

Moving on, I will report on our financial summary for FY2020.

19

Financial summary for FY2020
・ Record high income due to the sixth consecutive period of
growth in both sales and profit.
[Market environment]
・ The market environment continued to thrive in the transportation equipment
field mainly for automobiles, such as electric and hybrid vehicles, and theinformation and communications field.
・ Accelerated development of product software, coupled with automobile driving
support technology projects, etc., increased the demand for software
engineers.

[State of engineer dispatching business]･ The number of operative personnel was higher than that for the previous period.
(The number of engineers was higher than that for the previous period.
Utilization rate remained high.Newly graduated engineers entering theCompany in April 2019 were assigned ahead of the initial schedule.)
・ The unit price of engineers was higher than that for the previous period.
・ Total work person-hours saw a downward trend following work style reforms.

[State of contracting business]
・ Aggressive sales activities led to an increasing number of contracted projects.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

20This sums up our results for FY2020. In terms of the market environment, we
enjoyed a thriving market environment with demand driven by transportationequipment manufacturers, which was the same as last year. They were looking forsoftware engineers in particular.
In terms of the state of our engineer dispatching business, the number of operative
personnel increased due to an increase in the number of employees, and the unit
price of engineers went up.
At the same time, total work person-hours, especially overtime work person-hours,
continued to decline as a result of work style reforms.
Concurrently with our policy of increasing the weight of our contracting business,
the number of accepted contractual projects is also on the rise due to ouraggressive sales pushes.

20

Financial results highlights for FY2020■ Net sales up 10.6%, operating profit up 12.8%, ordinary profit up 12.5%,
profit up 13.4%.Operating margin 12.7%.
FY2019FY2020Percentage
ResultResult(million yen)(million yen)(%)

Change fromthe previous
Percentage
year(million yen)(%)

Changefrom theprevious
year
(%)

6,331

100.0

7,002

100.0

671

10.6

4,033

63.7

4,461

63.7

428

10.6

2,298

36.3

2,540

36.3

242

10.5

SG&A expenses

1,513

23.9

1,654

23.6

141

9.3

Operating profit

785

12.4

886

12.7

101

12.8

Ordinary profit

794

12.5

893

12.8

99

12.5

Profit

540

8.5

613

8.8

73

13.4

Net sales
Cost of sales
Gross profit･The number ofoperative personnel
increased.
･The unit price ofengineers rose.

･ Employee treatment
improved.

･ Recruitment
expenses increased.
･ The number ofadministration staff
increased.
･ Newly graduatedengineer hires
increased.
･ The floor space ofWest Japan LC
increased.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

21

Next, let’s look at our financial results highlights.
Net sales were approximately 7.0 billion yen, up 10.6% from the previous year.
Gross profit grew by 10.5%.
Operating profit grew by 12.8% to 886 million yen.
The operating margin was 12.7%.
Ordinary profit went up 12.5%.
The ordinary margin was 12.8%.
Profit went up 13.4%.
Our profit ended up to be 613 million yen.

21

Financial summary for FY2020: Net sales by business■Engineer dispatching up 8.7% ■ Contracting up 128.8%

Unit: million yen
Total: 7,002
7,000(Million yen)

Ratio
(%)

(Million yen)

Ratio
(%)

Changefrom theprevious
year(%)

Engineer
dispatching
services

6,210

98.1

6,753

96.4

8.7

(1.7)

Contracting

99

1.6

228

3.3

128.8

1.7

Subtotal

6,310

99.7

6,981

99.7

10.6

0.0

Other

21

0.3

20

0.3

(4.8)

0.0

Total

6,331

100.0

7,002

100.0

10.6

―

FY2019Total: 6,331

ResultFY2020Result

6,000

5,000

4,000

Percentage
variance
(pt)

6,753
6,210

3,000

2,000

1,000

99

228

0

21

20
FY2019FY2020

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

22

Let’s look at our financial results by category. This is the composition of net sales
by business.
It shows our engineer dispatching business and contractual dispatching business.
Engineer dispatching currently generates 96.4% of net sales.
The contracting business generates 3.3%.
The remaining 0.3% comes from other business.
In particular, the weight of contracting has increased from 1.6% last year to 3.3%,
almost double its previous level.

22

Financial summary for FY2020: Net sales by industry field■ Electrical equipment up 12.1% ■ Transportation equipment up 5.5%
■ Information and communications up 29.2%
Unit: million yen
Total: 6,981
7,000

Total: 6,310

Result

274
6,000

924

5.0

28.1

0.7

Machinery

361

5.7

512

7.3

41.6

1.6

Electricalequipment

1,869

29.6

2,096

30.0

12.1

0.4

Transportationequipment

2,353

37.3

2,482

35.6

5.5

(1.7)

Precisionequipment

924

14.6

830

11.9

(10.1)(2.8)

Information andcommunications

467

7.4

604

8.7

29.2

1.2

604

Miscellaneous

58

0.9

103

1.5

105.9

0.7

103

Total

6,310

100.0

6,981

100.0

10.6

―

2,482

830

58
0
FY2019FY2020Percentage
variance
(pt)

352

2,000

467

Ratio
(%)

Result

4.4

2,096

2,353

Ratio
(%)

274

1,869

3,000

(Million yen)

Changefrom thepreviousyear(%)

FY2020

Steel, nonferrous
materials andmetals

4,000

1,000

(Million yen)

512

361

5,000

FY2019352*Excludes sales from “Other” businesses.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

23

Here are our net sales by industry field.
Net sales to clients in the main industries of electrical equipment, transportationequipment, and information and communications increased by 12.1%, 5.5%, and29.2%, respectively.

23

Financial summary for FY2020: Top ten client companies by net sales[Top ten by net sales (Standard company name used)]
FY20191

FY2020

Our clients

Segment

Honda R&D Co., Ltd.

Transportationequipment

Our clients

Segment
Transportationequipment

Honda R&D Co., Ltd.

2

Nikon Corporation

Precision equipment

Nikon Corporation

Precision equipment

3

Panasonic Corporation

Electrical equipment

Sumitomo Electric Industries, Ltd.

Steel, nonferrous
materials and metals
Precision equipment

4

Terumo Corporation

Precision equipment

Terumo Corporation

5

Sumitomo Electric Industries, Ltd.

Steel, nonferrous
materials and metal

Panasonic Corporation

Electrical equipment

6

Tokyo Electron Technology Solutions Limited

Electrical equipment

Tokyo Electron Technology Solutions Limited

Electrical equipment

7

JTEKT Corporation

Machinery

DENSO TEN Limited

Electrical equipment8

Keihin Corporation

JTEKT Corporation

Machinery9

Hitachi Automotive Systems, Ltd.

Transportationequipment
Transportationequipment

Daikin Rexxam Electronics Co., Ltd.

Electrical equipment

10

Daikin Rexxam Electronics Co., Ltd.

Keihin Corporation

Transportationequipment

Electrical equipment[Net sales per 10 companies]
FY2020FY2019Percentage
variance(pt)(Million yen)Top 10

Total

3,158

50.1

3,332

47.7

5.5

(2.3)

Top 11 to 20

Total

825

13.1

890

12.8

8.0

(0.3)

Top 21 to 30

Total

660

10.5

583

8.4

(11.7)

(2.1)

1,665

26.4

2,175

31.2

30.6

4.8

6,310

100.0

6,981

100.0

10.6

―

Other than the above Total

Total

Result(Million yen)

Ratio
(%)

Changefrom theprevious
year
(%)

Ratio
(%)

Result*Excludes sales from “Other” businesses.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

24

Based on those results, here are our clients with top ten net sales.

24Financial summary for FY2020: Net sales by business field■ Machinery up 7.1% ■Control software up 22.4%■ Data processing up 39.5%
Unit: million yen
Total: 6,981
7,000

6,000

5,000

Retio
（%）

Changefrom theprevious
year
（%）

2,593

37.2

7.1

(1.2)

30.7

1,931

27.7

(0.2)

(3.0)

1,568

24.9

1,920

27.5

22.4

2.6

384

6.1

536

7.7

39.5

1.6

6,310

100.0

6,981

100.0

10.6

―

FY2019Total: 6,310

2,593

FY2020ResultRetio

Result(million yen)（%）(million yen)

Machinery

2,422

38.4

Electronics

1,934

Control software

Data processing

Percentage
variance

（pt）

2,422

4,000
1,931
3,000

1,934

2,000
1,920
1,000

1,568
Total

0

384

536

FY2019FY2020*Excludes sales from “Other” businesses.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

25

Next, this is our net sales by business field.
In the software and control software field, where demand was particularly strong,
net sales were up 22.4%.
In the data processing field, net sales went up 39.5%.
We predict that this demand for software engineers will likely continue from next
year onwards, and we have already begun hiring more software engineers.

25

Financial summary for FY2020: Term-end engineer count by business field■ Machinery up 7.8% ■ Control software up 22.9%■ Data processing up 52.2%
Unit: people
Total: 901
900

FY2020FY2019Total: 785

Changefrom theprevious
year

Retio
（%）

(People)

Retio
（%）

Machinery

281

35.8

303

33.6

7.8

(2.2)

Electronics

227

28.9

238

26.4

4.8

(2.5)

Control software

210

26.8

258

28.6

22.9

1.9

Data processing

67

8.5

102

11.3

52.2

2.8

785

100.0

901

100.0

14.8

―

800

Result

303
700
600

（%）

（pt）

281

500
400

Percentage
variance

Result(People)

238
227

300
200

258
210

100
0

67
FY2019102

Total

FY2020

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved26

And here is our term-end engineer count.
Discounting our engineers working in data processing, our mechanical, electrical,
and control software engineers are generally balanced numbers-wise, with roughly
250 to 300 engineers per category.
The total number of engineers at the end of the fiscal year was 901.

26

Financial summary for FY2020: Net sales by region■ Kanto up 8.7% ■ Tokai up 12.7% ■ Kinki up 8.7%

Unit: million yen
Total: 6,981
7,000

6,000

FY2019Total: 6,310

266

184

5,000

3,875
3,566

3,000

35

32
2,000

1,000

0

1,247

87

1,154

1,406

1,254

Ratio

(million yen)（%）(million yen)（%）

Change from Percentage
the previous variance
year

（%）

FY2020

（pt）

2.9

266

3.8

44.5

0.9

Kanto

3,566

56.5

3,875

55.5

8.7

(1.0)

32

0.5

35

0.5

11.2

0.0

Tokai

1,247

19.8

1,406

20.1

12.7

0.4

Kinki

1,154

18.3

1,254

18.0

8.7

(0.3)

Chugoku

87

1.4

96

1.4

10.5

(0.0)

Kyushu

38

0.6

46

0.7

22.1

0.1

6,310

100.0

6,981

100.0

10.6

―

96
46

FY2019Result

184

Total

38

Ratio

TohokuHokuriku

4,000

FY2020Result*Excludes sales from “Other” businesses.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

27

Next is our net sales by region.
Sales in the Kanto, Tokai, and Kinki regions increased compared to the previous
year.
We are currently putting effort into client development in the Tohoku, Chugoku,
Shikoku, and Kyushu regions, particularly in the hopes of improving recruitment.

27

Stance on engineer dispatching business net sales, expenses,
and improving margin percentages

Net sales
Number ofoperative personnel

Number ofengineers×

Utilization
rate

×Unit priceofengineers

×

Total work
personhours

Cost ofsales

Labor costs, etc. of engineers assigned to client companies

SG&A
expenses・ (Standby) labor costs incurred during internal education andtraining, labor costs of administrative staff positions
・ Hiring activity expenses

Two key points to improving margin percentages[Improving gross margin]
As we cannot shrink the labor costs of engineers, need to increase average unit price ofengineers.
[Improving operating margin]
Minimize addition of administrative staff entailed by the increase in engineers throughimproved administrative efficiency, and thereby suppress increase in the SG&A expense
ratio.
Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

28

Depicted here is our sales or profit structure in the engineer dispatching business.
Net sales are calculated by multiplying the number of operative personnel by theunit price and total work person-hours.
Then there is our engineers’ salaries. Salaries, the next line item, are the cost of
sales.
Subtracting personnel and SG&A expenses from this results in our operating
profit.
Finally, we have summarized two key points to improving margin percentages:
improving gross profit and improving the operating margin.
Please read through it later.

28

Engineer hires for FY2020 / turnover rate
[Newly graduated engineers]
200
150

156
3

4

130
3

103

119

127

FY2017FY2018FY2019

4

185

174
123

107

100
50

Unit: people

Joined in April
Joined in October

174

153

0

[Career engineers]

Unit: people

40
32
30
20

21

15.0

FY2021(est.)FY2022(forecast)[Turnover rate]

Unit: %

32

26

23

FY2020

10.0

9.0

9.7

9.0

8.9
7.3

19
5.0

10
0.0

0
FY2016FY2017FY2018FY2019FY2020

FY2021(est.)FY2016FY2017FY2018FY2019FY2020

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

29This next page contains supplementary information about the number of engineers
hired.
First, 174 newly graduated engineers plan to join the company on April 1, 2020.
Of that number, three are non-Japanese engineers.
We are currently working under the assumption that 185 newly graduatedengineers will be joining us next year in April 2021.
As for our career hires, our estimate for FY2021 is 32 engineers, the same as theprevious year.
The turnover rate was 7.3% in FY2020.
The turnover rate continues to improve on a year-to-year basis.

29

Financial summary for FY2020: Term-end engineer count / utilization rate
[Term-end engineer count]

FY2019(average) FY2020(average)

Change from theprevious year

898

106

792

As of year-end / Unit: people

1,000
800

931
828

814

798

785

600
400

926

922

Change from theprevious year

13.4

901

Oct. 2019:3 newly
graduatedengineers
join the Company

Apr. 2019:153 newly
graduatedengineers
join the Company

32 careerengineers join
the Company

200
0FY2019FY2020End of Q1 (Apr.) End of Q2 (Jul.) End of Q3 (Oct.) End of Q4 (Jan.) End of Q1 (Apr.) End of Q2 (Jul.) End of Q3 (Oct.) End of Q4 (Jan.)[Utilization rate (monthly)]
100.0

Unit: %FY2019(average) FY2020(average)*Based on the number of dispatched engineers

98.3

98.0

97.7
96.2

98.1

97.6

97.7

97.4

96.6

Change from theprevious year

(0.2)

97.9

97.5

96.0
94.0
92.0
90.0

FY2019End of Q1(Feb. to Apr.)

FY2020End of Q2(May to Jul.)End of Q3
End of Q4
End of Q1(Aug. to Oct.) (Nov. to Jan.) (Feb. to Apr.)

End of Q2(May to Jul.)End of Q3
End of Q4(Aug. to Oct.) (Nov. to Jan.)*New employees and others who joined the Company mid-year are not included in the utilization rate until after they are dispatched to their assignments.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved30This page is also supplemental, and it shows that we had 901 engineers at theend of the term.
This is a graph depicting the utilization rate of our engineers on a quarterly basis.

30

Financial summary for FY2020: Unit price of engineers / total work person-hours[Unit price of engineers (hourly)]
4,300
4,200

*Per person
Unit: yen *Based on the number of dispatched engineers

4,171
4,124

4,162

FY2019(average) FY2020(average)

4,152

4,150

4,179

Change from theprevious year

31

4,183

4,213

4,175

Change from theprevious year

0.7

4,164

4,100
4,000
3,900

FY2019End of Q1(Feb. to Apr.)

FY2020End of Q2(May to Jul.)End of Q3
End of Q4
End of Q1(Aug. to Oct.) (Nov. to Jan.) (Feb. to Apr.)[Total work person-hours (monthly)]190
180

Unit: hour

177

*Per person*Based on the number of dispatched engineers

Change from theprevious year

Change from theprevious year

168

(5)

(2.9)

173

174
170
167

End of Q3
End of Q4(Aug. to Oct.) (Nov. to Jan.)FY2019(average) FY2020(average)

178

170

End of Q2(May to Jul.)170

Summerleave

163

New Year’s
holidays

166

160
150

FY2019End of Q1(Feb. to Apr.)

FY2020End of Q2(May to Jul.)End of Q3
End of Q4
End of Q1(Aug. to Oct.) (Nov. to Jan.) (Feb. to Apr.)

End of Q2(May to Jul.)End of Q3
End of Q4(Aug. to Oct.) (Nov. to Jan.)

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

31This graph shows the unit price of engineers, which is the unit price per hour.
The graph below it shows the total work person-hours, which is a monthly
average.

31

Contents

1. Company Overview

p. 3

2. Financial summary for FY2020

p. 19

3. Medium-Term Business Plan (fiscal year ending January 31, 2021
to fiscal year ending January 31, 2023)

p. 32

4. Forecast of financial results and dividend for FY2021

p. 39

5. Reference

p. 43

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

32This concludes our financial summary for FY2020.
Moving on, I would like to present our Medium-Term Business Plan.

32

Background of the Medium-Term Business Plan (FY2021 to FY2023)

FY2019FY2020

Steady sales and profit growth.
On track to achieving the initial financial results targets if the trend
continues.
(7.5 billion yen net sales, 12.5% operating margin, 1,000 engineers)

FY2021
Insufficient progress made on our Basic Policy,“Build a foundation for sustainable and next-generation growth.”

FY2022

Extended the final year of the Medium-Term Business Plan fromFY2021 by two years and formulated a new three-year plan.
・Continue the Basic Policy and Basic Measures
・Add “Explore and seek new specialist fields of technology” tothe implementation measures.

FY2023

Aim to complete “Foundation building for next-generation growth”
on the auspicious year of the Company’s 60th anniversary of
establishment.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

33

Initially, we were implementing a three-year Medium-Term Business Plan for 2018,2019, and 2020, shown here as FY2019, FY2020, and FY2021.
However, we did not make sufficient progress on our Basic Policy to build afoundation, so we decided to extend the Medium-Term Business Plan by two
years. We then rolled over the new Medium-Term Business Plan to cover the threeyear period of FY2021, FY2022, and FY2023.
Despite this change, we still expect to achieve the numerical targets announced
externally for the initial three-year period: 7.5 billion yen in net sales, a 12.5%
operating margin, and a term-end engineer count of 1,000 engineers by the end of
the fiscal year, even with the budget at the end of the previous Medium-TermBusiness Plan.
We will continue to strive toward the completion of our basic measures for anotherthree years.

33Medium-Term Business Plan (fiscal year ending January 31, 2021
to fiscal year ending January 31, 2023)<Basic Policy>“Build a foundation for sustainable and next-generation growth”“Make Value! For the Next 2020-2022”

Basic Measures
1. Promote strategies by segment
・ Develop strategies for each segment(recruitment - education - assignment - system).
・ Establish approaches to markets by segment.
・ Explore and seek new specialist fields of technology.

2. Promote diversity and inclusion in talent management
・ Utilize workers of retirement age, women, and foreign workers(overseas students) as personnel.
・ Utilize and organize partner companies (set up a contracting system).

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

34This is the Basic Policy and Basic Measures in our current Medium-Term BusinessPlan.
In particular, one of our Basic Measures is to promote strategies for eachsegment.
Our second measure is to promote diversity and inclusion in talent management.
To do this, we will establish a contracting system.
We will remain resolute in regard to these two initiatives.

34

Approaches to markets by segment■ In order to meet the needs of our clients and cater to increasingly diverse business areas
in manufacturing processes, we implement strategies stratified into three segments torealize a high match rate between our engineers and clients.

Evaluation andtesting (final
adjustment)

Manufacturing

Assembly evaluation

Wide ValueGroup
This market segment covers awide range of design-related
tasks and corresponds to themajority of design anddevelopment work.

Quality inspection

Programming(design anddevelopment

Production

Prototyping, evaluation,
drawing modification

This market segment requires
advanced technical skills anddesign, e.g., advanced
development, R&D.

Detailed design

Organizational structureof ArtnerHigh ValueGroup

Basic design

R&D

Grand design(conceptual
design)Product
development

Sales

R&D

Conceptual design

Work processes of manufac-turers

Product
planning

Operation(operation andmaintenance)

Product ValueGroup
This market segment isassociated with quality
assurance, assembly andadjustment, and other aspects ofproduct quality and production.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

35

First, let’s go over the first Basic Measure in more detail.
This Basic Measure is to approach each market by segment, further strengthening
the upstream processes of High Value and Wide Value, which we introduced
earlier.

35

Numerical business targets <FY2023 (final year) earnings and sales targets>

Net sales
Unit: million yen / %Net sales

10,000Operatingmargin10.0 billion yen

12.5%

It is currently difficult to ascertain the effect the increasing spread of COVID-19 will have on our
performance, so its potential impact is not factored into the above Medium-Term Business Plan
targets and key indicators on the following pages. If any changes become necessary in the future,
we will disclose them immediately.

Operating margin

11.8

12.4

12.7

12.5

12.5

14.0
12.0

10.7
8,000

10,000
7,832

9.1
7.9
5,765

6,000
4.9

4,287

10.0

7,002

4,761

6,331

8.0

5,153

6.0

4,000
4.0

3,856
2,000

2.0

0

0.0
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021(est.)FY2022

FY2023(proj.)

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

36

Next, these are our numerical business targets.
Our sales target for FY2023, the final year of the Medium-Term Business Plan, is10.0 billion yen.
We will maintain an operating margin of 12.5%.

36

Numerical business targets <FY2023 (final year) key indicators>
Number ofengineers

1,300

As of year-end / Unit: people

1,400

Dispatched :Contracting = 9 : 1

1,300

1,200
1,000

1,000

901

800
600

543

569

FY2014FY2015

601

654

716

785

400
200
0

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023(proj.)

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved37

We also aim to add 300 engineers to arrive at a total of 1,300 engineers.
We would like to aim for a final ratio of 9:1 dispatched to contracting engineers.

37

Numerical business targets <FY2023 (final year) key indicators>

ROE

20% or more
Unit: %

30.0
25.0
20.0
15.0
10.0
5.0
0.0

22.0

FY2016

Payout ratio

24.4

26.9

25.2

FY2017FY2018FY201924.2

FY202030% or more
Unit: %

50.0
40.0

33.6

32.9

33.1

FY2017FY2018

35.4

35.5

36.1

FY2019FY2020

FY2021(est.)

30.0
20.0
10.0
0.0

FY2016

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

38

We are also looking to maintain an ROE of 20% or more and a dividend payout
ratio of 30% or more as our key business indicators.

38

Contents

1. Company Overview

p. 3

2. Financial summary for FY2020

p. 19

3. Medium-Term Business Plan (fiscal year ending January 31, 2021
to fiscal year ending January 31, 2023)

p. 32

4. Forecast of financial results and dividend for FY2021

p. 39

5. Reference

p. 43

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

39

Lastly, I would like to present our forecast of financial results and dividend for next
fiscal year, FY2021, which is our 59th term.

39Forecast of financial results for FY2021 / prerequisites■ Assuming that the number of engineers increases and that the utilization rate and theunit price of engineers remain at the same level as those in the previous year, we forecast
the seventh consecutive period of growth in both sales and profit and an operating
margin of 12.5%.
It is currently difficult to ascertain the effect the increasing spread of COVID-19 will have on our
performance, so the forecast of financial results below does not factor in its potential impact. If
any changes become necessary in the future, we will disclose them immediately.

[Forecast of financial results for FY2021]
Forecast

Percentage (%)

Changefrom thepreviousyear

Changefrom thepreviousyear (%)

FY2021

FY2020ResultPercentage (%)

7,002

100.0

7,832

100.0

830

11.9

Operating profit(million yen)

886

12.7

975

12.5

89

10.1

Ordinary profit(million yen)

893

12.8

979

12.5

86

9.6

Profit(million yen)

613

8.8

677

8.6

64

10.4

Net sales(million yen)[Prerequisites for FY2021]
156

174

18

11.5

Career engineers(people)

32

32

0

0.0

Turnover rate

(%)

7.3

Same level as preceding year

Utilization rate

(%)

97.4

Same level as preceding year

Unit price of engineers

(yen)

4,183

Same level as preceding year

Newly graduated engineers(April, October)(people)Newly graduated engineers joining in April 2021(people)

185

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

40

As you can see in the rounded rectangle, it is currently difficult to ascertain theeffect the increasing spread of COVID-19 will have on our performance, so theforecast of financial results below does not factor in its potential impact at thepresent time.
We will conduct a thorough investigation at a later date when its impact becomes
more apparent, and if revisions must be made, we will disclose said revisions assoon as possible.
With this in mind, our forecast of financial results for FY2021 is 7.832 billion yen in
net sales, an increase of 11.9% over the previous year.
We forecast operating profit to grow by 10.1% to 975 million yen.
Ordinary profit will grow by 9.6% to 979 million yen.
Our forecast of financial results is that profit will grow by 10.4% to 677 million yen.
The prerequisites for these results are shown in the lower graph.
First, we need to hire 174 newly graduated engineers.
Thirty-two career engineers must enter the company.
The budget is based on the assumption that the turnover rate, utilization rate, andunit price of engineers are the same level as the preceding year.
Our target for the recruitment of new graduates is to have 185 engineers joining in
April 2021.
We are working on a recruitment budget for this.

40

FY2020 / FY2021 Dividend per share■ FY2020…Ordinary dividend (year-end) 10.5 yen (1.5 yen more than initial
forecast of 9.0 yen).
Combined with the interim dividend of 10.0 yen, the total ordinary
dividend was 20.5 yen.
■ FY2021...Expected ordinary dividend 23.0 yen (interim 11.5 yen, year-end 11.5
yen). (Ordinary dividend up 2.5 yen)
Annual dividends per share(yen)ordinary dividend
Second quarter-end

Fiscal year-end

Total

FY2020

7.50

8.00

15.50

FY2021

10.00

10.50

FY2022(est.)

11.50

11.50

commemorative
dividend

2.50

Total

18.00

Dividendyield

Payout
ratio

(％)

(％)

Dividendonequity ratio
(DOE)
(％)

1.63

35.4

8.9

20.50

2.26

35.5

8.6

23.00

2.85

36.1

*Dividend yield (%) = individual dividend per share (total) ÷ stock price (beginning of the fiscal year, closing price) × 100
FY2019 (Closing value at beginning of year): 2,212 yen (before 2-for-1 stock split),
FY2020 (Closing value at beginning of year): 906 yen,
FY2021 (Closing value at beginning of year): 807 yen

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

41

Next, let’s look at our dividend forecast.
First, the year-end ordinary dividend for FY2020 is 10.5 yen.
The initial forecast was 9.0 yen, so we plan to increase the dividend by 1.5 yen.
We already paid an interim dividend of 10.0 yen, so combined with this, the annual
ordinary dividend will be 20.5 yen.
As for FY2021, we expect to pay an ordinary dividend of 23.0 yen, consisting of aninterim dividend of 11.5 yen and a year-end dividend of 11.5 yen.
The ordinary dividend will be 2.5 yen more than the previous year.

41

Dividend per share■ The Company considers it its top priority in business to pay stabledividends to shareholders and investors.
Unit: yen

25

23.00

Ordinary dividend (interim)
20.50

20

18.00
15.00
1.00

15
11.25

10

8.75

5

5.00

5.00

2.50

0

6.25
5.00
2.50

2.50

2.50

2.50

FY2012FY2013

FY2014FY2015

8.00

6.25
5.00

3.75

2.50

10.50

7.50

8.75

1.25

11.50

2.50

3.75
FY20165.00
FY2017

6.50

FY2018

10.00

11.50

FY2020

FY2021

7.50

FY2019(est.)*Dividends per share were retroactively revised to factor in the impact of stock splits conducted as follows.
• February 1, 2011 (3-for-1 stock split) • February 1, 2017 (2-for-1 stock split) • April 1, 2018 (2-for-1 stock split)

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

42

Lastly, this graph shows the trends in our annual dividends.

42

Contents

1. Company Overview

p. 3

2. Financial summary for FY2020

p. 19

3. Medium-Term Business Plan (fiscal year ending January 31, 2021
to fiscal year ending January 31, 2023)

p. 32

4. Forecast of financial results and dividend for FY2021

p. 39

5. Reference

p. 43

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

43

Section five consists of reference materials.
This concludes our presentation explaining Artner’s company overview, financialsummary for FY2020, Medium-Term Business Plan, forecast of financial results for
FY2021, and dividend forecast.
Thank you very much for your time and attention.

43

Impact of “equal pay for equal work” on our financial results andcorporate activities
Entered into force
April 2020:

Revised Worker Dispatching Act (realization ofequal pay for equal work)

The dispatching business operators must ensure fair treatment of dispatched workers
by either of the following methods for determining treatment.
(Equal and balanced treatment method) ... Equal and balanced treatment between
dispatched workers and regular workers employed by clients(Labor-management agreement method) ... Treatment based on a labor-managementagreement that meets certain requirements[Our response]・ Selected the labor-management agreement method as the method for
determining treatment.
・ Compare the wages of all employees with the standard wages forrecruited jobs in the Employment Security Service Statistics.
・ Conclude a labor-management agreement with the labor union
regarding treatment that meets certain requirements.
・ Corrective measures for employees for whom certain requirements areunmet.
Even if the above corrective measures are taken,
the impact on the Company’s profit will be negligible.
Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

44

44

Operating margin / ROA / earnings per share and net assets per share
40

Operating margin

30

Return on assets (ROA)

25.7

27.3

26.3

25.3

10.7

11.8

12.4

12.7

FY2017FY2018FY2019FY2020

22.0
20
10
0

300

9.1

FY2016

Unit: %

Earnings per share

Unit: yen

Net assets per share

256.77250

219.59200

184.81

150

152.10127.78

100
50
0

26.02
FY201634.22
FY201745.26
FY2018

57.73

50.91
FY2019FY2020*Earnings per share and net assets per share were retroactively revised to factor in the impact of stock splits conducted as follows.
• February 1, 2017 (2-for-1 stock split) • April 1, 2018 (2-for-1 stock split)

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

45

45

Net assets / equity ratio

Net assets

Unit: million yen, %Equity ratio

3,000

80.0
70.6

2,500

71.1

71.5

71.8
70.0

64.6

60.0
2,000

50.0

1,500

40.0
2,728
2,333

1,000

30.0

1,963
1,357

1,616

20.0

500

0

10.0

FY2016FY2017FY2018FY2019FY20200.0

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

46

46

Engineer breakdown / gross margin by HV (former HA),WV (former EG), and PV groups[Engineer breakdown]
HV (before FY2018: HA)

100.0

WV (before FY2018: EG)

18.4

17.1

17.0

81.6

82.9

83.0

PV

Unit: %

16.3

15.7

70.1

71.8

13.7

12.5

FY2019FY2020

80.0
60.0
40.0
20.0
0.0

FY2016FY2017FY2018[Gross margin (engineer dispatching services)]

Unit: %40.0
HV (before FY2018: HA)

WV (before FY2018: EG)

38.0

37.3

37.4

36.0

36.1

36.1
35.3

36.0
34.0

33.0

32.0

32.9

33.1

FY2016FY2017

30.0

PV

32.1
FY201832.8
FY201932.2
FY2020

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

47

47

Quarterly (accounting period) financial results[Net sales]
1,499

1,584

1,638

1,608

1,618

1,764

1,790

1,828
205
200

1,200
1,000

210
189

180

187

178

100

600
400

50
FY2019Q1

FY2020
Q2

Q3

Q4

Q1

0
Q2

[Ordinary profit]

Q3

Q4

FY2019FY2020

Q1

Q2

Q3

Q4

Q1

Q2

[Profit]

Unit: million yen

300

Q3

Q4

Unit: million yen

250
251

250
206
200

194

273
200

211
180

187

180

150

173
142

133

189

145

150

119

125

124

100

100

50

50
0

271

150

800

0

248

250

1,400

200

Unit: million yen

300

1,800
1,600

[Operating profit]

Unit: million yen

2,000

FY2019Q1

FY2020
Q2

Q3

Q4

Q1

0
Q2

Q3

Q4

FY2019Q1

FY2020
Q2

Q3

Q4

Q1

Q2

Q3

Q4

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved48

48

Quarterly (accounting period) financial results, numerical data
[FY2020]
Result(million yen)

Q2

Q1
Percent
-age

YOY

*(1)

(%)

(%)

(%)

Result(million yen)

Percent
-age

YOY

*(1)

Result(million yen)

Q3
Percent
-age
(%)

YOY
(%)

*(1)

Q4
Percent
-age

YOY

(%)

1,618

100.0

7.9

23.1

1,764

100.0

11.3

25.2

1,790

100.0

9.3

25.6

1,828

100.0

13.7

26.1

Cost of sales

1,005

62.1

8.8

22.5

1,078

61.2

9.8

24.2

1,148

64.1

6.6

25.7

1,229

67.2

17.1

27.5

Gross Profit

613

37.9

6.6

24.1

685

38.8

13.7

27.0

642

35.9

14.3

25.3

599

32.8

7.3

23.6

SG&A expenses

434

26.8

17.4

26.2

436

24.7

5.6

26.4

371

20.7

5.5

22.4

412

22.6

9.1

24.9

Operating profit

178

11.1

(12.9)

20.2

248

14.1

31.4

28.1

271

15.1

29.0

30.6

187

10.2

3.7

21.1

Ordinary profit

180

11.2

(12.8)

20.2

251

14.3

29.6

28.2

273

15.3

29.2

30.6

187

10.3

3.7

21.0

Profit124

7.7(12.5)

20.3

173

9.9

30.4

28.3

189
*(1) Quarterly composition of full-year financial results

10.6

30.3

30.9

125

6.9

4.8

20.5

YOY

*(2)

YOY

*(2)

Percent
-age

YOY

*(2)

(million yen)

(%)

(%)

*(1)

(%)

Net sales

(%)

(%)

Result(%)[FY2019]
Q1
Result(million yen)

Net sales

Percent
-age
(%)

Q2

(%)

(%)

Result(million yen)

Q3

Percent
-age
YOY
(%)

(%)

*(2)
(%)

Result(million yen)

Q4

Percent
-age
(%)

(%)

(%)

Result(million yen)

(%)

(%)

(%)

1,499

100.0

8.4

23.7

1,584

100.0

9.6

25.0

1,638

100.0

11.8

25.9

1,608

100.0

9.5

25.4

Cost of sales

924

61.6

10.2

22.9

982

62.0

6.8

24.4

1,076

65.7

7.6

26.7

1,049

65.3

8.6

26.0

Gross Profit

575

38.4

5.7

25.0

602

38.0

14.3

26.2

562

34.3

20.9

24.4

558

34.7

11.0

24.3

SG&A expenses

369

24.6

6.0

24.4

413

26.1

15.8

27.3

351

21.5

5.8

23.2

378

23.5

18.2

25.0

Operating profit

205

13.7

5.2

26.2

189

11.9

11.3

24.1

210

12.8

58.5

26.8

180

11.2

(1.5)

23.0

Ordinary profit

206

13.8

5.4

26.1

194

12.3

11.2

24.5

211

12.9

56.8

26.7

180

11.3

(1.7)

22.8

Profit

142

9.5

4.1

26.3

133

8.4

11.4

24.7

145

8.9

56.5

26.9

119

7.4

(9.0)

22.1

*(2) Quarterly composition of full-year financial results

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved49

49

Term-end shareholder numbers
Unit: people

4,000
Effective Apr. 1, 2018
Stock splits (2 for 1)

3,500

3,474

3,373

3,527

3,630

3,000
2,500

Effective Feb. 1, 2017
Stock splits (2 for 1)

2,000

1,824

1,910

2,005

1,500
1,000

1,032

1,161

1,220

500
0

FY2016Q2

FY2016FY2017Q2

FY2017FY2018Q2FY2018FY2019Q2

FY2019FY2020Q2

FY2020

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved50

50Data by owner category (As of January 31, 2020)■ Share Distribution by Owner
Category
Unit: %
Financial
instruments
Foreignbusiness
corporations, etc. operators
1.68
1.62
TreasurysharesFinancial
0.02
institutions
5.75■ Shareholder Distribution by
Number of Shares Held Unit: %50,000 and above 100,000 and above
0.19
0.22
10,000 and above
1.65
5,000 and above
1.96

500,000 and above
0.06
Under 100
6.61

1,000 and above
14.19

Individuals and other45.63

500 and above
10.36

Other corporations
45.30

Individuals and other
Other corporations
Financial institutions
Foreign corporations, etc.
Financial instruments business operators
Treasury shares

Under 100
500 and above
5,000 and above
50,000 and above
500,000 and above

100 and above
64.77

100 and above
1,000 and above
10,000 and above
100,000 and above

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved51

51

Our clients’ R&D costs■ The R&D costs of our client manufacturers have remained steady
FY2011 = 100

160

136

140

130

120
100

100

105

109

FY2012FY2013

118

124

FY2014FY2015126

130

FY2017FY2018

142

80
60
40
20
0

FY2011FY2016FY2019FY2020(est.)*Calculations were made by using the data of FY2011 as 100 (baseline).
*The costs of our listed clients whose fiscal year ends on March 31 were totaled.
Copyright(C) 2019 Artner Co., Ltd. All Rights Reserved52

52

Company Information
NameFoundedArtner Co., Ltd.
September 18, 1962

Representative

President and CEO SEKIGUCHI Sozo

Share listingFirst Section of the Tokyo Stock Exchange (Securities code: 2163)

General Meeting of
Shareholders

Held in Osaka

Capital238,284,320 yen (As of January 31, 2020)

Headquarters

Tokyo, Osaka

Business bases

Yokohama, Utsunomiya, Osaka, Nagoya

Learning centers

East Japan, West Japan
1) Machinery 2) Electronics 3) Software
Basic research, design, and development in the above fields,
as well as tasks relating to themBusiness fields
Number of
employees

License number

1,002 (As of January 31, 2020)
Worker Dispatching Business (派27-020513)
Paid Employment Agency Business (27-ユ-020355)
Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved

5353

Handling of this document / contact information / IR e-mails■ Handling of this document
This document is intended to provide information to help you deepen
your understanding of the Company, and is not intended to solicit
investment in securities issued by the Company.
Although this document has been created carefully to ensure its
accuracy, its completeness is not guaranteed.
The Company shall not be held liable for any failure or damage causedby the use of forecast data or information contained in this document.
The opinions, forecasts, and other information contained in thisdocument are based on our assessment at the time this document was
prepared, and they may include potential risks anduncertainties.Therefore, please note that actual results may differ fromthe forward-looking statements in this document due to various factors,
such as changes in the business environment.

Copyright(C) 2020 Artner Co., Ltd. All Rights Reserved5454