Q2 FY2023 Briefing for Analysts
and Institutional Investors
September 22, 2022

ARTNER CO., LTD.

Company Information
Name

Artner Co., Ltd.

Founded

September 18, 1962

Representative President and CEO SEKIGUCHI Sozo
Share listingFirst Section of the Tokyo Stock Exchange (Securities code: 2163)

General Meetingof Shareholders

Held in Osaka

Capital238,284,320 yen (As of July 31, 2022)

Headquarters

Tokyo, Osaka

Businessbases
Learning
centers
Business
fieldsNumber of
employees
LicensenumberYokohama, Osaka, Utsunomiya, Nagoya
East Japan, West Japan
Basic research, design, and development in the1) Software 2) Electronics 3) Machinery fields on the left, as well as tasks relating to them
1,308 (As of July 31, 2022)
Worker Dispatching Business (派27－020513)
Paid Employment Agency Business (27－ユ－020355)

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

2Investment Highlights

1

The eighth consecutive period of sales and profit
growth, double-digit growth

p. 3

2

Financial summary for Q2 FY2023

p. 10

3

Plan toward achieving the Prime listing criteria

p. 13

4

Stable and continuous dividend payments

p. 22

5

Reference

p. 26

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved3

1

The eighth consecutive period of sales and profit growth, double-digit growthMarket size of engineer dispatching business, our clients’ R&D costs■Market size of engineer dispatching business

1.1 to 1.3 trillion yen(estimate)Calculated by the Company based on the “Combined results of reports
on worker dispatching businesses” (Ministry of Health, Labour and Welfare)*The data of "annual net sales" of the worker dispatching businesses are used, which is a rough total of net sales arising from "dispatched workers
on open-ended contracts" and either of "manufacturing engineers," "information processing & communications engineers," or "other engineers."■ Our clients’ R&D costs
Our clients continuously allocate a budget for R&D, which keeps R&D costs stable.
September 2008: Global financial crisis

150
100

100

95

83

87

91

95

102

107

112

110

115

120

123

117

119

127

50
0
(est.)*Calculations were made by using the data of FY2008 as 100 (baseline). *The costs of our listed clients whose fiscal year ends on March 31 were totaled.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

4

1

The eighth consecutive period of sales and profit growth, double-digit growth

Factors behind “the eighth consecutive period of sales and profit
growth, double-digit growth”■Trust from our clients built on our long history
Over our long history of 60 years, we have built trust with many of our clients andhave a proven track record.
⇒ We can place newly graduated engineers with little or no experience,as well as place additional existing engineers.

■Business model developed by Artner since eight periods ago
Even during the global financial crisis of 2008, not many engineers placed in the
upstream processes of the work processes of manufacturers (R&D, design anddevelopment) experienced contract cancellations.
Artner decided to increase the ratio of engineers placed in upstream processes.
In order to recruit outstanding students who can be placed in upstream processes,
internal programs (e.g., job change assistance program, performance-based salarysystem, limited area system) were introduced based on the needs of engineers.
Placements were made after education and training were conducted according to ourclients’ upstream process work.
⇒ The unit price of engineers increased, resulting in higher profit margins.

■Placement of engineers in technical fields with high market needs
Assigned to projects for developing electric vehicles (EVs), fuel cell vehicles (FCVs),
infrastructure (charging infrastructure, hydrogen stations), automated driving,semiconductors, etc.
⇒ Utilization rate remained high.
Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved51

The eighth consecutive period of sales and profit growth, double-digit growth

History (at the time of founding in 1953)

1953 -

Originally founded as
Sekiguchi Kogyo Co., Ltd.
in Amagasaki, Hyogo in 1953.
Founded Sekiguchi
Kogyo Co., Ltd. in
Amagasaki, Hyogo

Reproduces and binds design
drawings received from clientcompanies, using whiteprinting
and blueprinting techniques.
Made reproductions and design
drawing bindings using whiteprinting
and blueprinting techniques.

Our engineers visit frequently
the design departments ofclient companies.
Our engineers started to frequently
visit the design departments of clientcompanies.

FoundedManufactured and sold industrial gloves.

Started hiring employees with STEM
degrees and offering a tracing service
for design drawings.

Received increasing requests for“design and development services.”Of
course.

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

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

We are interested
in tracing as well
as your designand development
services.

Demand increases fromclients for tracing andother designing anddevelopment services.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

6

1

The eighth consecutive period of sales and profit growth, double-digit growth

History (1962 to present)

1962 Company stock listed on
JASDAQ.
Stock listing
moved up to theFirst Section of
the Tokyo Stock
Exchange.

Worker Dispatching
Act takes effect inJapan.

1962

1998
1986

Establishes Osaka
Technology Center
Co., Ltd. to offer
design anddevelopment
services.

2017

2018

2007

Changes the company
name to Artner Co.,
Ltd.

2022
Transitioned to thePrime Market of
the Tokyo Stock
Exchange.

Celebrates
the 60th
anniversaryof itsfounding.

Celebrates the 55th
anniversary of its
founding. / Stock listing
moved to the Second
Section of the Tokyo
Stock Exchange.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved71

The eighth consecutive period of sales and profit growth, double-digit growth

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

Testing

Manufacturing, operation,
maintenance

Assembly evaluation

Programming

This market segment covers a wide
range of design-related tasks andcorresponds to the majority of designand development work.

Quality inspection

Schematics
Bill ofmaterials

Wide
Value Group

Sales

Production
Prototyping, evaluation,
drawing modification

Mechanicaldrawing Parts
drawing

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

Detailed design

High
Value Group

Product
development

Basic design

Conceptual design

Organizational
structure ofArtnerR&D

Work
processes ofmanufacturers

R&D

Product
Value Group
This market segment is associatedwith quality assurance, assembly
and adjustment, and other aspects
of product quality and production.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

8

The eighth consecutive period of sales and profit growth, double-digit growth1

Numerical business targets <FY2025 (final year) earnings andsales targets>

Operatingmargin11.6 billion yen

Net sales

14.0 %

Unit: million yen / %Net sales

14.0

Operating margin

12,000
12.4

12.7

12.4

14.0

13.0

12.5

11,60011.8
10,000

12.0

10.7

8,798
10.0

8,102

9.1

8,000
7.9

6,331

7,002

7,174
8.0

5,765

6,000
4.9

4,287

4,761

5,153

6.0

4,000
4.0

3,856
2,000

2.0

0

0.0
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023(est.)FY2024FY2025(proj.)

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

9Investment Highlights

1

The eighth consecutive period of sales and profit
growth, double-digit growth

p. 3

2

Financial summary for Q2 FY2023

p. 10

3

Plan toward achieving the Prime listing criteria

p. 13

4

Stable and continuous dividend payments

p. 22

5

Reference

p. 26

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved10

2

Financial summary for Q2 FY2023

Earnings highlights for Q2 FY2023■ Net sales up 13.6%, operating profit up 21.9%,

ordinary profit up 19.2%, profit up 14.2%. Operating margin 15.3%
Q2 FY2022

Q2 FY2023

Changefrom thepreviousyear% of
Net sales (¥ million)

Changefrom thepreviousyear■Newly graduated engineers■Utilization rate remained highdue to the recovery trend in the
demand for engineers.
■Placement of newly graduatedengineers who joined us in 2022
progressed ahead of the initialschedule.

Result(¥ million)% of
Net sales

Result(¥ million)

Net sales

3,980

100.0

4,522

100.0

542

13.6

■The number of operative
personnel was higher than for theprevious period.

Cost of
sales

2,478

62.3

2,890

63.9

412

16.6

■Progress in the placement of
unplaced personnel(%)

Gross profit

1,502

37.7

1,632

36.1

130

8.7

SG&A
expenses

935

23.5

941

20.8

6

0.7

Operatingprofit

566

14.2

690

15.3

124

21.9

Ordinary
profit

580

14.6

691

15.3

111

19.2

Profit

420

10.6

479

10.6

59

14.2

■led to a decrease in labor costs in
SG&A expenses and an increase in
the cost of sales.
■Despite a decrease in laborcosts, expenses for recruiting,travel, transportation, andothers increased with a recovery
in our recruiting and sales
activities.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

11

2

Financial summary for Q2 FY2023

Progress of the Earnings Forecast for Q2 FY2023■Q2 progress rates on full-year forecast of financial results:

Net sales 51.4%, operating profit 60.2%, ordinary profit 60.1%, profit 60.2%■At this time, we do not expect the economy to decelerate in the second half ofthe year.
Unit: ¥ million

9,000

8,798

Q2 FY2023
Result(¥ million)

8,000

% of
Net sales

Progress rate
on full-year
forecast
(%)

7,000

Net sales
OperatingprofitOrdinary
profitProfit

6,000
5,000

4,522

100.0

51.4

690

15.3

60.2

691

15.3

60.1

479

10.6

60.2

4,000

Earnings Forecast for FY2023
Result% of(¥ million)
Net sales

3,000
2,000

4,522
1,147

1,150

1,000
0
Net sales

Net sales

797

690

691

479

OperatingprofitOrdinary
profitProfitOperatingprofitOrdinary
profitProfit

8,798

100.0

1,147

13.0

1,150

13.1

797

9.1

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

12Investment Highlights

1

The eighth consecutive period of sales and profit
growth, double-digit growth

p. 3

2

Financial summary for Q2 FY2023

p. 10

3

Plan toward achieving the Prime listing criteria

p. 13

4

Stable and continuous dividend payments

p. 22

5

Reference

p. 26

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

13

3Plan toward achieving the Prime listing criteria

Compliance with the listing maintenance criteria of the Prime Market■Transitioned to the Prime Market of the Tokyo Stock Exchange in in April 2022
“Plan for Compliance with Listing Maintenance Criteria of New Market
Segment” was prepared as we did not meet the listing maintenance criteriaof the Prime Market as of the transition standard date (June 30, 2021)■Compliance with the listing maintenance criteria of the Prime Market
Criteria not met

Number of
tradablesharesThe Company(As of transition
standard dateof June 30, 2021)

Listingmaintenancecriteria

Tradable sharemarketcapitalization

49,748 units 4.1 billion yen
20,000 units

10 billion yen

The ratio oftradablesharesAverage daily
trading value

46.8% 28 million yen
35% 20 million yen

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

14

3

Plan toward achieving the Prime listing criteria

KPI requirements for compliance with tradable share market
capitalization / Planning period
KPI requirements / Actual
The ratio oftradable shares

As of transition
standard date ofJune 30, 2021

As ofJul. 31, 2022

Requirement

46.80%

70.00%

70.00%

Number of
4,974,000
tradable sharesshares7,439,000 7,439,000
sharesshares

As ofJan. 31, 2022

As ofSep. 13, 2022

Requirement

Price earnings
ratio (PER)

12.7 times 13.2 times 15.0 times

Earnings per
share (EPS)

68.59 yen 75.01 yen 93.34 yen

Stock price858 yen(forecast)

990 yen 1,400 yen

Apr. 2022
Secondary offering

Tradable share market capitalization

As ofJan. 31, 2022

43

billion yen

Requirement

10

billion yen

Planning period
Various efforts will be made to meet the listing maintenance criteria of tradable share market
capitalization in the lead-up to FY2025, the final year of the Medium-Term Business Plan.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

15

3

Plan toward achieving the Prime listing criteria

Measures to achieve the KPI requirements, their evaluation,and future issues■Increase the ratio of tradable shares
Secure a certain number of tradable shares through liquidation of shares held by existing
shareholders, e.g., discuss with major shareholders on the sale of shares.
⇒ Conducted a secondary offering and increased the ratio to 70%■Increase earnings per share (EPS)1

Aim to expand the scale of our business by building an internal
system of recruitment, training, and sales with carbon neutrality as amain pillar of our business activities

2

Conduct M&As and other activities to acquire new technical fields ofexpertise (e.g., chemistry, civil engineering and construction)■Increase shareholder returns

To beconsidered

Raise to 50%

Payout ratio

Based on 30%

Total return ratio

Consider share buyback■Strengthen IR activities (Details on next slide)
Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

16

3Plan toward achieving the Prime listing criteria

Strengthen IR activities■Strengthen information dissemination for individual and institutional
investors

Hold briefings for individual and institutional investors (online or in-person)(for individual investors: twice a year ⇒ 3 to 4 times a year; for institutional investors
and analysts: once a year ⇒ twice a year)
One-on-one meetings with institutional investors (phone or online)
Disseminate timely investor information on the website
Video messages from top management⇒ Increase opportunities to interact with individual
and institutional investors to raise awareness■Increase English-language disclosures with foreign investors in mind
Further increase English-language disclosures, including website materials (e.g., Medium-TermBusiness Plan, Company Overview, Business Model), Convocation Notice (April), Corporate
Governance Report (April), and Summary of Non-consolidated Financial Results (June)⇒ Inform foreign investors about the Company’s businesses
and financial results■Adapt to the Corporate Governance Code (ver. June 2021)

Ex: “companies listed on the Prime Market should enhance the quality and quantity of disclosure
based on the TCFD recommendations, or an equivalent framework.”⇒ From this fiscal year

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

17

3Plan toward achieving the Prime listing criteria

Medium-Term Business Plan (fiscal year ending January 31, 2023
to fiscal year ending January 31, 2025)
Basic policy"Build a foundation for sustainable and next-generation growth""Make Value for 2022 to 2024"
Basic Measures

Promote diversity andinclusion in talentmanagement

1 Promote strategies bysegment2•

Develop strategies for each segment(recruitment – education –assignment – system)•

Utilize workers of retirement age,
women, and foreign workers(overseas students) as personnel•

Establish approaches to markets bysegment••

Explore and seek new specialist fieldsof technology

Utilize and organize partnercompanies (set up a contracting
system)Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

18

3Plan toward achieving the Prime listing criteria

Artner's approach to sustainable growth and next-generation growthAs our social environment continues to change on a global scale, dealing with social issues,
such as initiatives based on the recommendations from the Task Force on Climate-related
Financial Disclosures (TCFD), is an important managerial agenda

Build an internal system of recruitment, training, and sales with carbon
neutrality as a main pillar of our business activities
Contribute to solving social issues through our business activities, increasing our corporate value
and returning profits to stakeholders
Build a foundation for sustainable growth and next-generation growth
Direction of our carbon neutrality initiatives
For our major customers in the automotive industry, etc.
Participation by our engineers in development projects related to electricvehicles (EVs) that do not emit CO2 when driven, fuel cell vehicles (FCVs),
infrastructure (charging infrastructure, hydrogen stations), automateddriving, semiconductors, etc.
Aim for further development and market penetration

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

19

3Plan toward achieving the Prime listing criteria

Our recruitment, training, and sales efforts with an eye tocarbon neutrality
Recruitment

Share of carbon neutrality recruitment targets
for new graduates and career hires

Recruitment ● Students who have graduated from departmentsin the fields of electricity, electronics, materials
targets
science, energy, and information technology● Experienced workers with skills and experiencein the fields above

In order to recruit more talents that match client needs, we arecommitted to changing our recruitment policy, which is heavily
focused on new graduates. ⇒ Balance the numbers of new
graduates and career hires to secure optimum talents

Training

Training
details

FY2022

FY2025(target)New
graduates

47.9%

55.0%

Career
hires

48.6%

55.0%

● Understanding the principles of power systems (inverter systems) for EVs and FCVs
● Optimization of infrastructure resources and AI/machine learning for human and product transactions
through the introduction of cloud computing● Model design and validation of EV battery management systems● How to analyze the results of sensor characterization● Recycling of chemicals and materials

Meet the ever-increasing needs of engineers in the software,electrical and electronic fields.⇒ Increase trainers

Sales

Placement in carbon neutrality projects
Contribute to solving social issues to improvebusiness performance
Increase the unit price of engineers by approximately 10%
compared to other projects⇒ Increase net sales and profit margins

Share of engineers placed in carbon
neutrality projects among all engineers

FY2022

FY2025(target)

41.3%

50.0%

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved20

3Plan toward achieving the Prime listing criteria

Medium-Term Business Plan Correlation diagram of earnings andsales targets and key indicators* □⇒□… (FY2022) ⇒ (FY2025) figures

166 ⇒ 197
(Up 18.7％)（est.）

Number ofcareer hires

35 ⇒ 172(Up 391.4％)

Turnoverrate

11.3% ⇒ 8.8%

Gross margin

Number of engineers

Number of new
graduates

1,073 ⇒ 1,600 (Up 49.1％)

×Share of engineers placed in carbon
neutrality projects among all engineers

41.3% ⇒ 50.0%
Increase the unit price of engineers
by approximately
10% compared to other projects

34.6% ⇒ 38.1% (Up 3.5pt)

Utilization
rate

＋

×

Total work
person-hours¥ 8.1 billion⇒ ¥ 11.6 billion(Up 43.2％)

Operating margin

Net sales×

Unit price ofengineers

Recruitmentcost¥ 300 billion ⇒ ¥ 600 billion

Ratio of recruitment
cost to net sales

3.1% ⇒ 4.8%(Up 1.7pt)

12.5% ⇒ 14.0%（Up 1.5pt）

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

21Investment Highlights

1

The eighth consecutive period of sales and profit
growth, double-digit growth

p. 3

2

Financial summary for Q2 FY2023

p. 10

3

Plan toward achieving the Prime listing criteria

p. 13

4

Stable and continuous dividend payments

p. 22

5

Reference

p. 26

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

22

4

Stable and continuous dividend payments

Forecast of dividend for FY2023■This year’s interim dividend revised to 20.00 yen, up 1.00 yen from theprevious forecast. Year-end dividend (planned) 19.00 yen, annual dividend(planned) 39.00 yen.
Annual dividends per share(yen)
SecondFiscal yearquarter-end
end

Dividendyield(%)

Payout ratio Dividend on(%)
equity ratio
(DOE)
(%)

Total

FY2022

14.00

20.50

34.50

3.97

50.3

FY2023(forecast)

20.00

19.00

39.00

4.43

52.0

10.9

*Dividend yield (%) = individual dividend per share (total) ÷ share price (year-end, closing price) × 100

Closing value at ending of FY2022 (January 31, 2021) 869 yen / Closing value at ending of Q2 FY2023 (July 29, 2022) 880 yen

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

23

4

Stable and continuous dividend payments

Dividend per share
Dividend increased for the eighthconsecutive period■The top priority in business is to pay stable dividends to shareholders and investors.
40
35

39.00

■ Ordinary dividend (interim)■ Ordinary dividend (year-end)■ Commemorative dividend

Payout ratio rose to
50%

34.50

30

19.00

25

23.00
18.00

15
11.25
8.75

10

15.00
1.00
7.50

2.50

10.50

8.00
20.00

5.00
3.75

2.50
2.50

2.50

3.75

FY2014FY2015FY2016

Dividyen forecastend
up by 1.00 fromprevious of 19.00 yen

11.50

6.25

6.25

5.00

0

20.50

20.50

20

5

Unit: ¥

5.00

6.50

7.50

FY2017FY2018FY201910.00

FY202011.50

FY202114.00

FY2022

FY2023（est.）

Dividends 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) 2023 Artner Co., Ltd. All Rights Reserved

24

4

Stable and continuous dividend payments

Numerical management targets (FY2025) ROE / Payout Ratio

ROE
30.0
25.0
20.0
15.0
10.0
5.0
0.0

≧

20 %
Unit：％

26.9

25.2

FY2018

Payout Ratio

24.2

FY2019≧FY2020

FY2021

FY2022

Unit：％

50.0
33.1

21.7

50 %

60.0
40.0

21.5

35.4

35.5

FY2019FY202050.3

50.7

FY2022

FY2023（est.）

38.9

30.0
20.0
10.0
0.0

FY2018FY2021

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

25Investment Highlights

1

The eighth consecutive period of sales and profit
growth, double-digit growth

p. 3

2

Financial summary for Q2 FY2023

p. 10

3

Plan toward achieving the Prime listing criteria

p. 13

4

Stable and continuous dividend payments

p. 22

5

Reference

p. 26

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved26

5Reference

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) 2023 Artner Co., Ltd. All Rights Reserved27

5Reference

PurposeSupport the growth and self-actualization of engineers,
who are Japan’s world-class assets.
For resource-poor Japan, its engineers are assets, of which we can boast to the world.
Artner is a platform that supports the growth andself-actualization of engineers.
Artner nurtures engineers not only as assets of Artner,
but also as shared assets of Japan.

Amid a rapidly changing work environment and mindset,
attributed to the fluidity of talents and various diversity initiatives, Artner is committed topromoting the happiness of working engineers to create “a new way of life” for them.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved28

5Reference

Business Model■Hire undergraduate, graduate, technical, and professional students in the sciences (engineering, scienceand engineering, science, information engineering) as regular employees. After receiving education andtraining, 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, precision equipment manufacturer, andinformation and communications companies

Engineer
Dispatching

Hire
regularemployees

Providetechnical
services

EducationandTraining

Contracting
Placed in
Artner’s
project
team

Deliver
outputs toour clients

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved29

5

Reference

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

Dispatch period

Artner Co., Ltd.

Fixed-term
employment
dispatch

Employment relationshipcontinues as engineers are
regular employees

Dispatch period

Dispatching service
ends

Indefinite
employment
dispatchEngineers start working at their next
manufacturer assignment.
In between assignments,

engineers enhance their skills through training
while receiving a salary.

Employment
relationship ends
Common idea that many people
associate with dispatch
employment
Unstable Irregular employment
Frequent transfers
Hard labor Low wages

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved30

5Reference

Business fields
Software

Electronics

Machinery

Compatible fields

Compatible fields

Compatible fields

Embedded
IT Solution
Model-BasedElectrical Equipment
Electronic Circuits
Electronic Devices

Drive Systems
Mechanisms
Structures and Materials

Software engineers develop
software to be embedded in
IoT devices and application
software for network systems.

Electronic engineers design thecircuit boards that form theheart of equipment and devices
and they conduct reliability
assessments of such systems.

Mechanical engineers design
the mechanisms of machineswith moving parts using 2D/3D
CAD tools.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved31

5Reference

Top ten client companies by net sales in FY2022■Top ten by net sales (Standard company name used)
FY2021

FY2022

Our clients

Segment

Our clients

Segment

1

Honda R&D Co., Ltd.

Honda R&D Co., Ltd.

2

Honda Motor Co., Ltd.

Transportationequipment
Transportationequipment

Honda Motor Co., Ltd.

Transportationequipment
Transportationequipment

3

Nikon Corporation

Precision equipment

Nikon Corporation

Precision equipment

4

Sumitomo Electric Industries, Ltd.

Steel, nonferrous
materials and metals

Sumitomo Electric Industries, Ltd.

Steel, nonferrous
materials and metals

5
6
7
8
9

Terumo Corporation

Precision equipment

Terumo Corporation

Precision equipment

DENSO TEN Limited

Electrical equipment

Panasonic Corporation

Electrical equipment

Panasonic Corporation

Electrical equipment

Tokyo Electron Technology Solutions Limited

Electrical equipment

Tokyo Electron Technology Solutions Limited

Electrical equipment

Tokyo Electron Miyagi Ltd.

Electrical equipment

JTEKT Corporation

Machinery

Machinery

Daikin Rexxam Electronics Co., Ltd.

Electrical equipment

JTEKT Corporation
Chubu Toshiba Engineering
Corporation

10■Net sales per 10 companies
ResultRatio

ResultRatio

Changefrom thepreviousyear(million yen)(%)(million yen)

(%)

(%)

FY2021

Top 10
Top 11 to 20
Top 21 to 30

Total
Total
Total
Other than the above Total
Total

Electrical equipment

3,394
977
655
2,134
7,162

FY2022

47.4
13.6
9.2
29.8
100.0

3,765
1,139
778
2,405
8,089

46.6
14.1
9.6
29.7
100.0

10.9
16.6
18.7
12.7
12.9

Percentage
variance
(pt)

(0.8)
0.4
0.5
(0.1)
―

*Excludes sales from "Other" businesses.
Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

32

5ReferenceTerm-end shareholder numbers
Unit：people
Apr. 2022
Secondary offering

10,000

9,723

9,000
8,000
7,000
Effective Apr. 1, 2018
Stock splits (2 for 1)

6,000
5,000

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

4,000

4,381

3,474

3,373

3,527

3,630

Q2-FY2019

FY2019Q2-FY2020

FY2020

3,521

3,662

3,799

FY2021Q2-FY2022

3,000
2,000

2,005

1,000
0

FY2018Q2-FY2021

FY2022Q2-FY2023

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

33

5Reference

Stock price changes（January 4th - September 13th, 2022）

1,000

950
Apr. 2022
Secondary offering

900

850

800

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved34

5Reference

Internal programs that can be chosen by engineers

Performancebased salarysystemThe HV Group is responsible for the top-secret, high-level
design and development projects of different
manufacturers under a performance-based, generous
salary system.

Limited areasystemEngineers with three years of work experience (from thefourth year of their career) can limit their area of work toeither the Kanto, Chubu, or Kansai region.

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

Job change
assistanceprogramIf the engineer wishes to change jobs and theclient/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 totheir hometowns to work.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved35

5Reference

What is the job change assistance program?

Basic policy

Benefit toour clients

The program respects the choices made by our engineers, whether they choose
to develop their careers as regular employees of the Company or go work at ourclient to challenge themselves in a new world.

Benefit toour engineers

Benefit to
ArtnerRecruitment

Clients can assess
the abilities of Artner
engineersduring theirplacement period(3 to 5 years) before
hiring them.

Engineers cangain experienceand develop theirskills at Artnerand have theirabilities be evaluatedby clients basedon their actual
onsite work.

The program encourages students who wish towork at a manufacturer but
had little interest in engineer dispatching
services and did not consider joining Artner tobecome interested and decide to join
the Company upon comparing it
With other companies.

Sales
If engineers from Artner are successful after
changing jobs, the reputation of “Artner’s former
employee” will improve.
Such engineers will further strengthen
the relationship between the Company andour clients.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved365Reference

Design and development projects including “carbon neutrality”
Eco cars

Fuel cell vehicles (FCVs)
Software●Development of brake control
system●Analysis of motors and inverters

Software●R&D of hydrogen station
system
●R&D of energy system

Electronics●R&D of next-generation fuel cells●Hybrid system design●Safety evaluation of automotive
batteries

Machinery●Development of eco car
chargers●Development of drive motors

Automated driving

Electronics●Analysis of basic performanceof fuel cells●R&D of hydrogen safety

Semiconductors

Software

Software●R&D of Driving Safety Support
Systems●Advance development of
automatic perimeter monitoring
system using camera images●Development of applications
for semiconductor
manufacturing equipment

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

Electronics●Circuit design for
semiconductor lithographyequipment

Machinery●Development of temperature
controller for semiconductor
lithography equipment(enclosure concept, basic
design)Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved37

5

Reference

Products and systems related to design and development
Home electronics
Software●Development of energy system●Development of iPhone
applications

Electronics●Prototyping, evaluation, andanalysis of smartphone circuitboards●Circuit design for AV equipment

Machinery●Design and development ofhome appliances (enclosure
design, structural design)●Development of in-car
navigation system

Motorcycle

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

Electronics●Design and development ofcontrol board for X-ray imaging
system●Evaluation of visceral fat
measuring device

Machinery●Development of PET system●Improvement of bloodtransfusion and infusion sets,
design of next set

Aerospace machinery
Software●Development of test softwarefor development of brakes●Development of softwarefor digital meters

Electronics●Design of harnesses forelectrical wiring

Machinery●Design and development offrames●Design and development ofelectric motorbikes

Software●R&D of next satellites●Development and evaluation ofsimulators for satellite radio
communication equipment

Electronics●Development of satellite
inspection equipment

Machinery●Design and development ofaircraft test jigs
●Development of passenger
aircraft AV equipment●Design and development ofaircraft
Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved38

5

Reference

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

Number ofoperative personnel

Number ofengineers×■Cost of sales

Utilization
rate

×Unit priceofengineers

×

Total work
personhours

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]
Increase average unit price of engineers.
[Improving operating margin]
Minimize addition of administrative staff entailed by the increase inengineers through improved administrative efficiency, and thereby
suppress increase in the SG&A expense ratio.
Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

39

5

Reference

Number of newly graduated and career engineers hired / Turnover rate
Weight given to
students in softwareand electronics fields,
less to students inmachinery

Newly graduated engineers
Joined in April
200

Joined in October
177
5

156
130

150

3

204
2

166

Unit: people

160

3

100
127

50

202

172

153

166

0
FY2019FY2020Turnover rate

FY2021

11.7
9.0

11.3

Includes the 1% avg.
turnover rate from the jobchange assistance program（proj.）

Unit: people
110

120

60
40
20
0

FY2019（est.）

Shortfall in
newly graduatedengineers
supplemented
with career
engineers80

7.3

FY2018FY2024

100

8.9

5.0

0.0

FY2023Career engineers

Unit: %

15.0

10.0

FY2022

FY2020

FY2021

FY202219
FY201826

FY201932

FY202029

FY202135

FY2022

FY2023（proj.）

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved40

5ReferenceTerm-end engineer count / Utilization rate for Q2 FY2023
Term-end engineer count

Q2 FY2022 (average)

Q2 FY2023 (average)

1,077

1,156

Unit: persons

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

1,152

1,109

1,084

FY2022End of Q1(Apr.)End of Q2(Jul.)End of Q3(Oct.)*Based on the number of
dispatched engineers

1,216

1,192

End of Q4(Jan.)

95.6

97.6

95.2

98.3

96.5

Change from theprevious year
(pts)

2.0
97.0

Recovery trend
in the demandfor engineers

96
94
FY2022End of Q1(Feb. to Apr.)

Q2 FY2023
25 newly graduatedengineers
join the Company

End of Q2(Jul.)Q2 FY2023 (average)

98.4
96.1

End of Q1(Apr.)Q2 FY2022 (average)

100

90

7.4

FY2023

Unit: %

92

79

Apr. 2022
166 newly graduatedengineers
join the Company

Utilization Rates

98

1,073

Change from the Change from theprevious year
previous year
(persons)(%)

FY2023End of Q2(May to Jul.)End of Q3(Aug. to Oct.)

End of Q4(Nov. to Jan.)End of Q1(Feb. to Apr.)

End of Q2(May to Jul.)*These figures do not include the number of new employees placed after joining the Company mid-year.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved41

5

Reference

Unit price of engineers / Total work man-hours for Q2 FY2023
Unit price of engineers

Q2 FY2022 (average)

Q2 FY2023 (average)

4,217

4,186

*Figures for dispatched engineers *Per person

Unit: yen / hour

4,300

4,217

4,216

4,250

4,174

4,200

Change from the
Change from theprevious year
previous year (%)
(yen)

▲ 31

Contract negotiations
with priority given toassigning unassigned
engineers

4,153

4,170

▲ 0.7

4,203

4,150
4,100
4,050
4,000

FY2022End of Q1(Feb. to Apr.)

FY2023End of Q2(May to Jul.)

Total work man-hours

End of Q4(Nov. to Jan.)Q2 FY2022 (average)

Q2 FY2023 (average)

170

169

*Figures for dispatched engineers *Per person

Unit: hours / month180

End of Q3(Aug. to Oct.)

175
162

▲1

FY2022End of Q1(Feb. to Apr.)

FY2023End of Q2(May to Jul.)End of Q3(Aug. to Oct.)

▲ 1.0

166

162

160
150

End of Q2(May to Jul.)

Change from the
Change from theprevious year
previous year (%)
(hrs)

172
166

170

End of Q1(Feb. to Apr.)

End of Q4(Nov. to Jan.)End of Q1(Feb. to Apr.)

The number of working days
has changed due to thedifference in holiday calendar
from last year.

End of Q2(May to Jul.)

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

425Reference

Numerical business targets <FY2025 (final year) key indicators>
Number ofengineers

1,600

Recruitment of
new graduates :Career hires

1:1

Unit : people
Dispatched :Contracting

1,600

9:1

1,600

1,400
1,200

1,073

1,000

901

800
600

543

569

FY2014FY2015

601

654

716

1,157

971

785

400
200
0
FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2025（proj.）

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

43

5

Reference

Business locations
Headquarters

Tokyo, Osaka

Business bases

Yokohama, Osaka,
Utsunomiya, Nagoya

Learning centers

East Japan, West Japan

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

44

5

Reference

Education and training flow
■After entering the Company, employees undergo a process of “general training,” “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.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved45

5Reference

Industry-academia collaboration■Deepening industry-academia collaboration by combining universities’ advanced technologies andArtner’s practical skills.

Lectures at universities
Our training staff give practical lectures atuniversities as part-time lecturers and seminar
lecturers.

Collaboration with academic societies andorganizations

We present papers at affiliated academic
societies and organizations. We are deepening
our friendship with members of universities.
● Japan Society for Graphic Science● Japan Society for Design Engineering● The Japan Society of Mechanical Engineers● The Institute of Electrical Engineers of Japan, etc.

Publication of educational materials
With the cooperation of companies anduniversities, we have put together books on
the training know-how that we have accumulated,
and use the books in our education and training.

Skill development papers
Our training systems and outputs are made available
as papers to educational and business professionals.
The papers are used for developing a wide range ofhuman resources.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

46

5

Reference

Skill development seminars■The seminars are held by inviting lecturers from diverse fields. Participants acquire a range ofknowledge, not limited to specific technical fields, and develop their human skills.

TOEIC score improvement seminar●Learn how to acquire useful English by preparing for
TOEIC®

Seminar on next-generation businessskills needed in the new normal era●Our potential to design the future of the organization

Technological capability booster lectures
Around 10 times a year, outside lecturers sha
re technical information on various topics for
employees’ personal growth.
The seminars especially help those withpractical experience to develop criteria
for making effective use of
their experience.

●Strategy for developing China’s new technology
industries and 4K / 8K and 5G●Introduction to feature engineering
for data science●Introduction to contactless power transfer●IoT security●Analytical methods for thermal stress problems

Human skill enhancement seminar●Adapting to an era of diversity
Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

47

5

Reference

Career support courses■ Courses are offered in line with jobs and career levels to ensure employees possess the skills
required by the manufacturers with which they are placed.

Software skill development courses●Introduction to JavaScript●Introduction to MicroPython●Introduction to IoT Microcontroller ESP32●MBD engineers in the automobile industry●Practical algorithm development●Power window pinch detection

Electronics skill development courses
Even after being assigned to a
department, employees who areparticipating in a manufacturer’s project
receive training on technologies andproducts
in high demand, both as on-the-job andoff-the-job team training.

●Improving work efficiency using Excel VBA●Sequence control and production site

Machinery skill development courses●Basics of resin sheet metal design●Product conceptual design training●Fluid mechanics in our surroundings

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

48

5

Reference

Business environment forecast

Perceived engineer
shortage

FY2023

FY2025(forecast)(proj.)

Medium-TermBusiness PlanFirst year

Medium-TermBusiness Plan
Final year

Expected to persist

Post-COVID
normalization

COVID expected
to continue

Key subjects andindustries

Carbon neutrality, automobile industry,
semiconductor industry

Living with
COVID

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved49

5

Reference

Artner’s initiatives for achieving SDGs in the Medium-TermBusiness Plan■❝Carbon neutrality❞

Personnel for technicaldevelopment of eco cars

Participating in the “Fun to Share”
climate change campaign andproviding■Promote diversity and inclusion in talent management
Diversity and LGBTQ initiatives
Improving the employment
environment to promote active
participation of women

Ensuring diversity and equal
opportunity in employment
Active hiring of people withdisabilities

Establishing a diversity
promotion office

Establishing a diversity promotion office
Diversity and LGBT initiatives

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

50

5

参考資料

Financial summary for Q2 of Reporting Period 61 (FY2023)

Marketenvironment■ While both control of the seventh wave of COVID-19 infections in Japan and recoveryof economic activities are being sought, the demand for engineers in the automotive
and semiconductor industries remain strong.
■ Projects related to carbon neutrality, including next-generation batteries for EVs, havebeen implemented actively.

State of engineer
dispatchingbusiness■ The number of operative personnel surpassed that of the same period of the preceding
year.
・Number of engineers increased; utilization rate remained high due to the recovery
trend in the demand for engineers.
・ Placement of newly graduated engineers who joined us in 2022 progressed aheadof the initial schedule.
■ The unit price of engineers dropped slightly from the same period of the preceding year.
(Prioritized placement negotiations for unplaced engineers)■ Total work person-hours dropped slightly from the same period of the preceding year.
(The number of work days changed due to the difference in the holiday calendar fromthe preceding year.)

Expenses■ Progress in the placement of unplaced personnel led to a decrease in labor costs in
SG&A expenses and an increase in the cost of sales.
(Labor costs connected to engineers are recorded as SG&A expenses until they are
assigned to our client companies, after which the costs are recorded under cost of
sales.)■ SG&A expenses increased slightly. (Despite a decrease in labor costs, expenses forrecruiting, travel, transportation, and others increased with a recovery in our recruiting
and sales activities.)
Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved51

5

Reference

Net sales by business for Q2 FY2023■ Engineer dispatching up 11.8%, ■ Contracting up 35.6％
Unit: ¥ million

Total: 4,522

5,000

Q2 FY2022

Total: 3,980

4,500

ResultResult% of(¥ million) Net sales (¥ million)

4,000
3,500
3,000
2,500

Q2 FY2023

4,135

% of
Net
sales

Changefrom the Percentage
previous variance
year
（%）

（pt）

Engineer
dispatching
services

3,700

93.0

4,135

91.4

11.8

▲ 1.5

Contracting

278

7.0

378

8.4

35.6

1.4

Subtotal

3,979

100.0

4,513

99.8

13.4

▲ 0.2

Other

1

0.0

9

0.2

645.3

0.2

Total

3,980

100.0

4,522

100.0

13.6

3,700

2,000
1,500
1,000
500

278

378

1

9

―

0
Q2 FY2022

Q2 FY2023

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved52

5Reference

Net sales by industry field for Q2 FY2023■Electronic devices up 22.3%, ■Transportation equipment up 5.2%,■Precision equipment up 8.0%, ■Information and communications up 21.1%
Unit: ¥ million

Total: 4,513

5,000
4,500

Total: 3,979

ResultQ2 FY2023
Result

216
278

3,500

1,310
3,000

1,071

2,500
2,000
1,511

1,500

1,589

1,000
446

500
74

482

380

460

Q2 FY2022

Q2 FY2023

99

Changefrom theprevious
year

Percentage
variance

（%）

（pt）

(¥ million)% of
Net sales(¥ million)% of
Net sales

Steel, nonferrous
materials and metals

216

5.4

230

5.1

6.5

▲ 0.3

Machinery

278

7.0

339

7.5

22.0

0.5

Electrical equipment

1,071

26.9

1,310

29.0

22.3

2.1

Transportationequipment

1,511

38.0

1,589

35.2

5.2

▲ 2.8

Precision equipment

446

11.2

482

10.7

8.0

▲ 0.5

Information andcommunications

380

9.6

460

10.2

21.1

0.6

Miscellaneous

74

1.9

99

2.2

34.4

0.3

3,979

100.0

4,513

100.0

13.4

230
339

4,000

0

Q2 FY2022

Total

―

*Excludes sales from "Other" businesses.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved53

5Reference

Net sales by business field for Q2 FY2023■Embedded / Model-Based up 8.5%, ■IT Solution up 21.2%,■Electronics up 23.8%
Unit: ¥ million

4,500

Q2 FY2022

Total: 4,513

5,000

Total: 3,979

ResultQ2 FY2023% ofResult% of(¥ million) Net sales (¥ million) Net sales

4,000
3,500

2,000

1,179
445

(pt)

Embedded /Model-Based

1,179

29.6

1,280

28.4

8.5

▲ 1.3

IT Solution

367

9.2

445

9.9

21.2

0.6

Electronics

1,043

26.2

1,291

28.6

23.8

2.4

Machinery

1,388

34.9

1,496

33.2

7.7

▲ 1.8

Total

3,979

100.0

4,513

100.0

13.4

367
1,291
1,043

1,500
1,000
500

(%)

1,280

3,000
2,500

Changefrom the Percentage
previous variance
year

1,388

0
Q2 FY2022

―

1,496

Q2 FY2023*Excludes sales
from "Other"businesses.

[The name changes below took effect as of the release of thefinancial results materials for the fiscal year ended January 31, 2022.]“Control software” changed to “Embedded / Model-Based”“Data processing” changed to “IT Solution”

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved54

5

Reference

Net sales by region for Q2 FY2023■Kanto up 12.7%, ■Tokai up 12.0%, ■Kinki up 11.5%
Unit: ¥ million

Total: 4,513

5,000

Total: 3,979

4,500
4,000

Q2 FY2022
Result263

146

Q2 FY2023% ofResult% of(¥ million) Net sales (¥ million) Net sales

Changefrom the Percentage
previous variance
year
(%)

(pt)

Tohoku

146

3.7

263

5.8

80.4

2.2

Kanto

2,316

58.2

2,609

57.8

12.7

▲ 0.4

Hokuriku

11

0.3

16

0.4

40.3

0.1

Tokai

704

17.7

789

17.5

12.0

▲ 0.2

Kinki

649

16.3

723

16.0

11.5

▲ 0.3

Chugoku

67

1.7

65

1.5

▲ 1.6

▲ 0.2

Kyushu

84

2.1

45

1.0

▲46.5

▲ 1.1

Total

3,979

100.0

4,513

100.0

13.4

3,500
3,000

2,609
2,316

2,500
2,000
1,500
1,000
500

16

11

67

704

789

649

723

84

65
45

―

0
Q2 FY2022

Q2 FY2023*Excludes sales from "Other" businesses.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved55

5Reference

Forecast of financial results for FY2023 / prerequisites[Forecast of Financial results]
FY2022

FY2023

PercentPercentForecast
age
age(million yen)(million yen)
Result(%)(%)

Changefrom thepreviousyear

Changefrom thepreviousyear(million yen)(%)

Net sales

8,102

100.0

8,798

100.0

696

8.6

Operating profit

1,010

12.5

1,147

13.0

137

13.6

Ordinary profit

1,032

12.7

1,150

13.1

118

11.4

728

9.0

797

9.1

69

9.4

Profit[Prerequisites]
Newly graduated engineers(April, October) (people)

204

165

(39)

(19.1)

Career engineers (people)

35

110

75

214.3

Turnover rate (%)

11.3

Decreased YoY

Utilization rate (%)

96.6

Unit price of engineers (yen)4,189

Total work person-hours (h)166Same level as
preceding year
Same level as
preceding year
Same level as
preceding year

[Expected time of assignment completion]
Newly graduated engineers joining in April 2022

Around the same
period as prepandemic

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved56

5Reference

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

Entry into theCompany

Education andtraining

Retirement
age

Placement

High ValueGroup

Continued
employment
programExpertManagerial position

Wide ValueGroup

Training
manager
Product ValueGroup

Job change
assistance program

Job change

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved57

5

Reference

Our clients (by industry, in alphabetical order, standard company
name used)■ Business with client companies in a wide range of industries for stable businessTransportationequipment

SUBARU, TOYOTA MOTOR, Nissan Motor, BOSCH, Honda Motor, etc.

Electronic
devices

OMRON, Tokyo Electron, Panasonic Holdings, Lasertec, etc.

Precisionequipment

SHIMADZU, Terumo, NIKON, etc.

Machinery

SMC, Komatsu, JTEKT, etc.

Information andcommunications

Hitachi Hi-System21, 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 1,000 companies
Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved58

5

Reference

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

Return on assets (ROA)

Unit: %

40
30

27.3

20

11.8

26.3

25.3

22.1

21.7

12.4

12.7

12.4

12.5

FY2019FY2020

FY2021

FY2022100
FY2018

Unit: yen

350

Earnings per share

Net assets per share

337.14293.93300
250

256.77219.59184.81

200
150
100
50

45.26

50.91

57.73

68.59

59.16

0
FY2018FY2019FY2020

FY2021

FY2022*Earnings per share and net assets per share were retroactively revised to factor in the impact of stock splits
conducted as follows.
April 1, 2018 (2-for-1 stock split)
Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved59

5

Reference

Net assets / equity ratio

Net assets

Unit: million yen, %Equity ratio

4,000

80.0
71.1

71.5

71.8

70.5

70.4

3,500

70.0

3,000

60.0

2,500

50.0

2,000

40.0
3,582
3,123

1,500
1,000

30.0

2,728
1,963

2,333

20.0

500

10.0

0

0.0
FY2018FY2019FY2020

FY2021

FY2022

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved60

5Reference

Engineer breakdown by group / gross margin
Engineer breakdown
100.0
80.0

■HV (before FY2018: HA)

17.0■WV (before FY2018: EG)■PV

Unit: %

16.3

15.7

16.4

15.8

70.1

71.8

71.1

72.1

13.7

12.5

12.5

12.1

FY2019FY2020

FY2021

FY2022

60.0
40.0

83.0

20.0
0.0

FY2018Gross margin(engineer dispatching services)

40.0
38.0

HV (before FY2018: HA)

WV (before FY2018: EG)

37.3

38.5

36.0
36.0

32.0
30.0

32.1
FY2018

Unit: %

39.4

37.4

36.1

34.0

PV

32.8
FY2019

36.1

35.1
35.1

33.9
32.2
FY202031.8
FY2021

FY2022

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved61

5Reference

Quarterly (accounting period) performance
Net sales■FY2022 ■FY2023

2,500

2,016

1,976

2,000 2,003

Operating profit

2,106

312

300

257

240

250

186

200
1,000

Unit: ¥ million

326

350

1,500

■FY2022 ■FY2023

378

400

2,290

2,232

Unit: ¥ million

150
100

500

50
0

0

Q1

Q2

Ordinary profit■FY2022 ■FY2023

Q4

Unit: ¥ million

379

400
350

Q3

ProfitQ3■FY2022 ■FY2023

300

312
250

250

Q2

260

250

190

200

Unit: ¥ million

263
228
191

200

216
181

150

150
100

100

50

50

0

0

Q1

Q4

350

329

300

Q1

Q2

Q3

Q4

127

Q1

Q2

Q3

Q4

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved62

5Reference

Quarterly (accounting period) performance trend, numerical data
FY2023
Q1
Result(¥ million)

% of
Net
sales

Q2
YOY
(%)

※①
(%)

Result(¥ million)

% of
Net
sales

Q3
YOY
(%)

※①

Result(%)(¥ million)

Net sales

2,232

100.0

11.4

2,290

100.0

15.9

Cost of sales

1,387

62.1

15.9

1,503

65.6

17.3

Gross profit

845

37.9

4.8

787

34.4

13.1

SG&A expenses

467

20.9

▲ 2.8

474

20.7

4.2

Operating profit

378

16.9

16.0

31.7

312

13.7

30.0

26.2

Ordinary Profit

379

17.0

15.0

31.5

312

13.7

24.6

26.0

Profit

263

11.8

15.1

29.4

216

9.4

13.1

24.2

24.2

% of
Net
sales

Q4
YOY
(%)

※①
(%)

Result(¥ million)

% of
Net
sales

YOY
(%)

※①
(%)

24.8

*(1) Quarterly composition of the forecast of financial results (full year)

FY2022
Q1
Result(¥ million)

% of
Net
sales

Q2
YOY
(%)

※②
(%)

Result(¥ million)

% of
Net
sales

Q3
YOY
(%)

※②
(%)

Result(¥ million)

% of
Net
sales

Q4
YOY
(%)

※②
(%)

Result(¥ million)

% of
Net
sales

YOY
(%)

※②
(%)

Net sales

2,003

100.0

6.9

24.7

1,976

100.0

11.1

24.4

2,016

100.0

15.8

24.9

2,106

100.0

18.4

26.0

Cost of sales

1,197

59.8

4.4

22.6

1,281

64.8

16.6

24.2

1,343

66.7

26.7

25.3

1,480

70.3

30.3

27.9

Gross profit

806

40.2

10.8

28.8

695

35.2

2.3

24.8

672

33.3

(1.2)

24.0

625

29.7

(2.7)

22.3

SG&A expenses

480

24.0

4.8

26.8

455

23.0

▲4.0

25.4

414

20.6

(14.6)

23.2

439

20.9

3.0

24.6

Operating profit

326

16.3

21.1

32.3

240

12.2

16.6

23.8

257

12.8

32.3

25.5

186

8.8

(14.1)

18.4

Ordinary Profit

329

16.4

21.8

31.9

250

12.7

19.5

24.3

260

12.9

24.5

25.3

190

9.1

(13.3)

18.5

Profit

228

11.4

22.1

31.4

191

9.7

31.7

26.2

181

9.0

24.6

24.8

127

6.1

(15.3)

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

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved63

5Reference

Data by owner category (As of July 31, 2022)
Share Distribution by Owner
Category
Unit: %
Foreign corporations,
etc.
5.51

Financial instruments
business operators
3.19
Treasuryshares0.02

Financial
institutions
9.03

Other
corporations
26.12

Shareholder Distribution by
Number of Shares Held50,000and above
0.15
10,000and above
0.67
5,000
and above
0.74

1,000
and above
11.61
500
and above
9.21

Individuals
and other
56.14

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

100,000
and above
0.06

Unit: %
500,000
and above
0.03

Under 10028.29

100 and above
62.20

Under 100
1,000
and above
50,000and above100
and above
5,000
and above
100,000
and above500
and above
10,000and above
500,000
and above

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

64

Handling of this document

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 caused by the use of forecast
data or information contained in this document.
(Forward-looking statements)
The opinions, forecasts, and other information contained in this document are based on ourassessment at the time this document was prepared, and they may include potential risks anduncertainties.
Therefore, actual results may differ from the forward-looking statements in this document due
to various factors, such as changes in the business environment.
(Processing of numbers)
As the amounts in the text and figures of this document are rounded down to the nearest unit,
the total of breakdowns may not coincide with the official total numbers. In addition, as ratios(%) are rounded to the first decimal place, the total of their breakdown may not add up to
100.0%.

Copyright(C) 2023 Artner Co., Ltd. All Rights Reserved

65