TechnoPro Group
Current Business Environment andMedium-Term Management Plan ProgressTechnoPro Holdings, Inc. (code: 6028, TSE）

August 8, 2024

Copyright © TechnoPro Holdings, Inc. All rights reserved.

Contents

Page

I: Current Business Environment (Japan KPIs)

Ⅱ: Medium-Term Management Plan
“Evolution 2026” ProgressⅢ2

i : Financial Performance7ii : Initiatives for Remaining Two Years

13: Sustainability Management

Copyright © TechnoPro Holdings, Inc. All rights reserved.

26

1

Contract Renewal Ratio [Mar, Jun, Sep, Dec]
• Terms of most staffing contracts are three or six months, therefore major contract renewal cycle occurs every three months(particularly in March, the contracts up for renewal reach around 80% of total contracts, and March contract renewal ratio
usually tends to be around 90% since many projects end to coincide with the closing of our customers’ fiscal year)• There was no major decline in contract renewal ratio or contract termination despite concerns over global recession; renewal
ratio for June 2024 ended up with 93.8% (renewal ratio could have increased to 94.4% if calculated, excluding effect fromvoluntary contract terminations to promote shift-up initiatives), anticipating the same level of renewal ratio for September
2024 as previous year if the effect from shift-up is excluded(Contract Renewal Ratio)(No. of Engineers)

25,00097.5%

20,000

93.7%

93.8%

93.2%

15,000

95.0%

92.5%

10,000

90.5%

90.0%

90.4%

90.3%

5,000

87.5%

0

85.0%
Sep

Dec

Mar
FY22.6Engineers on
assignment

Copyright © TechnoPro Holdings, Inc. All rights reserved.

Jun

Sep

Dec

Mar

Jun

FY23.6
Contracts up for
renewal

Sep

Dec

Mar

Jun

FY24.6
Non-renewed
contracts

Renewal ratio

2New Orders Trend by “Technology” [Quarterly]• The newly acquired orders in FY24.6 increased year-on-year in all technologies, ensuring adequate volume of orders uponengineer resources (fulfillment ratio of approx. 30% for remaining orders; no difference of utilization ratio among technology
areas)• Succeeded in acquiring orders with higher unit prices, although new orders in IT are slightly decreasing both year-on-year andquarter-on-quarter; shortage of eligible engineers is becoming an issue to tackle(No. of Orders, YoY Growth Ratio)+120%

10,000

+120%

8,000

+80%

8,000

+80%

6,000

+40%

6,000

+40%

4,000

0%

4,000

0%

2,000

(40%)

2,000

(40%)

(80%)

0

0

Q3
3Q

Q4
4Q

Q1
1Q

FY22.6

Q2
2Q

Q3
3Q

Q4
4Q

Q1
1Q

FY23.6

Q2
2Q

Q3
3Q

Q4
4Q

IT

Machinery

10,000

3Q
Q3

4Q
Q4

1Q
Q1

FY22.6

FY24.6

2Q
Q2

3Q
Q3

4Q
Q4

1Q
Q1

FY23.6

2Q
Q2

3Q
Q3

4Q
Q4

(80%)

FY24.6+120%

10,000

+120%

8,000

+80%

8,000

+80%

6,000

+40%

6,000

+40%

4,000

0%

4,000

0%

2,000

(40%)

2,000

(40%)

0

3Q
Q3

4Q
Q4

FY22.6

1Q
Q1

2Q
Q2

3Q
Q3

FY23.6

4Q
Q4

1Q
Q1

2Q
Q2

3Q
Q3

FY24.6

4Q
Q4

(80%)

Construction

Chemical

10,000

0

3Q
Q3

4Q
Q4

FY22.6

1Q
Q1

2Q
Q2

3Q
Q3

FY23.6

4Q
Q4

1Q
Q1

2Q
Q2

3Q
Q3

4Q
Q4

(80%)

FY24.6† (1) Machinery: Machinery, Electric/Electronic, (2) IT: Embedded Control, Software Development/Maintenance, IT Infrastructure,(3) Chemical: Chemical, Biochemical, (4) Construction: Construction; (1) - (4) do not include Others (the same shall apply hereinafter)
Copyright © TechnoPro Holdings, Inc. All rights reserved.

3

Mid-career Recruitment by “Technology” [Quarterly]• 3,573 mid-career engineers hired in FY24.6 include 542 inexperienced talents requiring OJT (195 in IT and 347 inConstruction) and 130 non-Japanese engineers with in-demand skills recruited globally mainly in IT field, reinforcing
the experienced hires among increasingly intensifying war for talent• Through the collaboration with alliance partners, proactively continue to hire inexperienced talents requiring OJT, while
securing projects in advance where they will be assigned immediately after training(No. of Engineers)
600

500

500

400

400

300

300

IT

Machinery

600

200
100
0

200
100

3Q
Q3

4Q
Q4

1Q
Q1

FY22.6

2Q
Q2

3Q
Q3

4Q
Q4

1Q
Q1

FY23.6

2Q
Q2

3Q
Q3

0

4Q
Q4

FY24.6500

500

Chemical

400
300
200
100
4Q
Q4

FY22.6

1Q
Q1

2Q
Q2

3Q
Q3

FY23.6

Copyright © TechnoPro Holdings, Inc. All rights reserved.

4Q
Q4

1Q
Q1

2Q
Q2

3Q
Q3

FY24.64Q
Q4Construction

600

3Q
Q3

4Q
Q4

1Q
Q1

FY22.6

600

0

3Q
Q3

2Q
Q2

3Q
Q3

4Q
Q4

1Q
Q1

FY23.6

2Q
Q2

3Q
Q3

4Q
Q4

FY24.6

400
300
200
100
0

3Q
Q3

4Q
Q4

FY22.6

1Q
Q1

2Q
Q2

3Q
Q3

FY23.6

4Q
Q4

1Q
Q1

2Q
Q2

3Q
Q3

4Q
Q4

FY24.6

4

Turnover by “Technology” [incl. FY25.6 Forecast]• Turnover ratio for permanent employees was 9.1% (highest in Construction at 13.3%, lowest in Machinery at 7.0%) in FY24.6,
projecting 9.8% in FY25.6• Turnover ratio shows an increasing trend particularly in IT sector, as the hiring environment is further shifting to the seller'smarket due to labor shortage and the impact of increased labor mobility• Construction may bring up the total average, as it may worsen due to increased hiring of young, inexperienced engineers
16.0%

1,600

(No. of Engineers)

1,600

16.0%

1,308

800

400

12.0%

7.0%

7.0%

376

377

8.0%

1,200

IT

Machinery

1,200

800

400

0.0%

0

1,600

16.0%

1,600

1,200

12.0%

0

Chemical

800

FY22.6

FY23.6

FY26.6

8.0%

4.0%

169

105
FY22.6

FY25.6

11.3%

7.8%

400

0

FY24.6

FY23.6

FY24.6

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FY25.6

FY26.6

0.0%

Construction

4.0%

12.0%

929

8.8%
8.0%

8.0%

4.0%

FY22.6

FY23.6

FY24.6

FY25.6

FY26.6

16.0%

13.3%

1,200

800

400

0

0.0%

12.0%

7.7%

8.0%

407

4.0%

205

FY22.6

FY23.6

FY24.6

FY25.6

FY26.60.0%

5

Contents

Page

I: Current Business Environment (Japan KPIs)

Ⅱ: Medium-Term Management Plan
“Evolution 2026” ProgressⅢ2

i : Financial Performance7ii : Initiatives for Remaining Two Years

13: Sustainability Management

Copyright © TechnoPro Holdings, Inc. All rights reserved.

26

6

Medium-Term Management Plan Financial Target• The transitional first two years of the medium-term plan period (five years) require upfront investment to promote recruitmentof key talents as well as education and training for Solution Business expansion and to establish business infrastructure forEngineer Training and DX Promotion Businesses, building solid foundation for the Core Business evolution; then aims torecoup investment in the last three years, achieving accelerated growth in earnings• FY26.6 target remains unchanged at this time, although operating profit for the third year (FY24.6) fell short of the mediumterm plan, as the earnings for FY25.6 are expected to recover the growth momentum initially planned

Overseas

5-year CAGR

Revenue Development (including M&As)+21.3%

Other Businesses in
Japan

+5.6%
+15.4%

Solution

+9.2%

+5.9%
Core

FY21.6

FY22.6

FY23.6

Solid Foundation
for Core Business Evolution(yen in billions)

RevenueOP

FY24.6

FY25.6

FY26.6

Accelerated Growth

FY21.6

FY23.6
Results

2-yearCAGR

FY24.6
Results

Guidance

FY24.6YoY

FY26.6Plan

3-year
CAGR

161.3

199.8

+11.3%

219.0
21.9(24.3)
14.6

237.0

+8.1%

250.0

+7.7%

5-year
CAGR
+9.2%

18.8%

22.9%

Results

19.4

21.8

+5.9%

(Core OP)(17.6)(21.3)(+10.1%)Net Profit
ROE

13.2
25.1%

15.3
21.3%

+7.7%

(27.0)(+10.7%)(32.0)

32.0+13.6%(+14.4%)+10.5%(+12.7%)18.5+26.0%

22.0
20%++12.7%+10.7%

27.0+23.2%

Note: 1. CAGRs for the first 2- and full 5-year are calculated as the average annual growth rate starting from FY21.6 results; CAGR for the last three years is
calculated as the average annual growth rate starting from FY23.6 results
2. Revenue contribution from M&As to Solution/Overseas Businesses is expected to be 15bn yen and 15bn yen respectively in FY26.6; OP contribution is
expected to be 15% and 15% respectively
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7

P&L Breakdown [FY25.6 figures: Guidance]
3-year CAGR +10.8%

5-year CAGR (plan) +9.2%
219.2

250.0

Revenue

30.0

161.3

(yen inbillions)• FY24.6: YoY up 9.7%, vs. plan up 5.7%
• Revenue has significantly surpassed the mediumterm plan driven by the increase in engineer
headcount well exceeding the target• Revenue guidance for FY25.6 is 237 billion yen;including only Robosoft as notable contribution from
M&A, but exceeding the target of the fourth year
(o/w M&A contribution: 22 billion yen)

3-year CAGR +4.0%

5-year CAGR (plan) +10.5%

Operating Profit

32.0
21.9

19.4

4.5

• FY24.6: YoY up 0.4%, vs. plan down 4.0%
• Profit growth had continued until FY23.6, but
FY24.6 results fell short of the plan due to theimpact of impairment losses (core OP: up 1.4
billion yen vs. plan)• OP guidance for FY25.6 is 27.0 billion yen; aiming
to achieve the target of the plan by further growthof major domestic businesses, and return to theblack in Other Businesses in Japan and Overseas(yen inbillions)

Ratio on Revenue

24.6%

13.7%
12.1%

GP

26.8%

SG&A

15.7%

OP

10.0%

26.9%

14.1%
12.8%

• FY24.6: YoY GP margin up 0.4 pts / SG&A ratio
down 0.1 pts / OP margin down 0.9 pts; vs. plan GP
margin up 0.9 pts / SG&A ratio up 0.9 pts / OP
margin down 1.0 pts• Although GP margin has steadily improved, SG&A
ratio is expected not to achieve the plan due to cost
increase in hiring and training; OP margin may fall
below the target, too (FY24.6 results had temporary
impact from impairment losses)

Note: 1. FY22.6 and thereafter, bar graphs on left and solid lines of line graphs indicate targets in the medium-term plan (the same applies hereinafter)
2. FY24.6 and thereafter, black borders on bar graphs indicate M&A contributions expected in the medium-term plan (the same applies hereinafter)
Copyright © TechnoPro Holdings, Inc. All rights reserved.

8

Revenue Breakdown [FY25.6 figures: Guidance]
3-year CAGR +7.0%

Composition on revenue %5-year CAGR (plan) +5.9%

Core Business
Revenue

146.6• FY24.6: YoY up 8.5%, vs. plan up 3.6%

160.0

• Carried out active recruitment andtraining/education mainly in IT/digital domains,
contract price hike for existing engineers also madecontribution

119.8
81.2%

(yen inbillions)

3-year CAGR +17.7%

76.4%

73.7%

• While strengthening KPI management to makeinvestment in training visible, aim to achieve
continued growth in the Core Business and provide
talents to the Solution Business

5-year CAGR (plan) +15.4%

Solution Business
Revenue• FY24.6: YoY up 15.1%, vs. plan up 6.9%
23.6%
18.8%

45.3

• FY24.6 earnings surpassed the plan driven by
establishment of consulting division and enhanced
collaboration among the Group companies

26.3%
57.0

• In FY25.6, seek to implement more focusedstrategies to achieve further expansion of the
Solution Business by identifying our competitive
advantages

27.8(yen inbillions)
100.0

3-year CAGR +31.0%

Overseas Business
Revenue

75.0
50.0
25.0

11.7%
7.1%
11.4

0.0

(yen inbillions)

5-year CAGR (plan) +21.3% 20%
12.0%

15%
10%

25.6

30.0

5%
0%

• FY24.6: YoY up 9.2%, vs. plan up 23.8%• In FY25.6, promote offshore delivery for solution
business in Japan by leveraging Robosoft's
expertise• Each overseas entity is subject to the Strategic
Review to establish business portfolio in line with
the Group's strategy; carve-out possibility included

FY21.6
FY22.6
FY23.6
FY24.6
FY25.6
FY26.6
Note: 1. Solution Business includes project-type services and engineer staffing in advanced technology fields in Japan; revenue from solution services outside
Japan is included in Overseas Business (15bn yen in FY26.6)
2. Composition on revenue %: [Core Business, Solution Business] ratio to sum of revenues from R&D Outsourcing/Construction Management Outsourcing
segments; [Overseas Business] ratio to consolidated revenue

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9

Japan KPI Breakdown [FY25.6 figures: Guidance]
3-year CAGR +8.6%

5-year CAGR (plan) +6.2%

Number ofEngineers (Japan)

27,50026,054
20,330• FY24.6: YoY up 8.0%, vs. plan up 1,494• FY24.6 results and FY25.6 guidance have surpassed
the initial target one year ahead, since recruitment
progressed better than initial target during the
medium-term plan
• However, the turnover ratio for IT engineers, who
are in high demand, tends to increase; recognizingthat curbing turnover is a major issue to tackle(No. ofEngineers)
5,000• FY24.6: YoY up 261, vs. plan up 1,359

4,575

Recruitment(Japan)4,000• Recruitment was well above the target amid
intensifying competition for talents by promoting
recruitment of engineers requiring OJT or global
talent while maintaining adequate hiring criteria

3,428

3,000
2,000

1,405

• In FY25.6, expect the same hiring volume asprevious year, while promoting cost efficient
recruitment to trim down total cost, as hiring fees
are soaring

1,000
0

(No. of
FY21.6Engineers)

FY22.6

FY23.63-year CAGR +2.3%

FY24.6

FY25.6

FY26.65-year CAGR (plan) +2.7%

Unit Sales Price(Japan)

725
634

678

• FY24.6: YoY up 1.3%, vs. plan down 11K yen• Unit price fell short of the plan for FY24.6 due toincreased recruitment of new-grads and younger
mid-career engineers, although proportion of the
Solution Business, which earns higher unit price,
has expanded on track• Continue efforts to raise unit sales price higher than
wage hike of each engineer, while FY25.6 guidanceis also expected to fall below the target(thousandyen/month)

Note: 1. Figures in Recruitment does not include engineers acquired through M&A
Copyright © TechnoPro Holdings, Inc. All rights reserved.

10Reference: M&A Performance (Changes in ROIC)
R&D/Construction Mgmt Outsourcing

Other Businesses in Japan

PBZ

TQO

8.5%

TBC
PCA

8.5%

(0.2%)PROBIZMO Co., Ltd.

(2.4%)BMES*

TOQO.Co.Ltd
Pc Assist Co., Ltd.

海外セグメント
Overseas

Boyd & Moore Executive Search K.K.

TechnoBrain Co.,Ltd.

Total Invested Capital (above 8 post-IPO) 22,002mn yen
incl. entities merged with TechnoPro, Inc. (invested capital 26,256mn yen)o/w acquired in medium-term period
Helius

8.5%

Orion
Robosoft

11,739mn yen

GCOMNET (merged with TechnoPro, Inc.) & Robosoft

ROIC (FY24.6)

8.1%

targeting at least 10% ROIC within 3 years from investment
as financial discipline

Cost of Capital (FY24.6)

8.5%* Figures of BMES overseas subsidiaries belonging to Overseas were aggregated with BMES Japan, calculated into Other Business in Japan segment
Copyright © TechnoPro Holdings, Inc. All rights reserved.

11

Contents

Page

I: Current Business Environment (Japan KPIs)

Ⅱ: Medium-Term Management Plan
“Evolution 2026” ProgressⅢ2

i : Financial Performance7ii : Initiatives for Remaining Two Years

13: Sustainability Management

Copyright © TechnoPro Holdings, Inc. All rights reserved.

26

12

Medium-Term Business Strategy Outline (repost)• Strive growth putting more focus on “quality” for the Core Business (engineer staffing in Japan), as well as business
transformation with “evolution” as its pivot (not “diversification”), thereby aiming to expand business and change businessmodel by staying ahead of changes in supply and demand over the medium- to long- term

“Evolution” of Core Business

Solution
BusinessCore
Business

DX
Promotion
Business
evolution

Engineer
Training
Business

evolution
evolution“Evolution” of Capabilities
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13

Reference: Medium-Term Plan Preconditions & Logic (repost)
Trading business (myopic perspective)

Business Model to date
SupplyDemandRecruit as many talents meeting theorders (mainly experienced) as possible ina timely manner

Bench (non-operating) is bad
Focus on utilization ratio

Acquire as many new orders as possible
through grassroots sales activity

Manufacturing business(medium/long-term perspective)
DemandBusiness Model to be
SupplyStrategic bench is good
Create as many talents (including recruitment+ Pricing power
requiring OJT) meeting the orders (including
unrealized orders forecasted based on
Accept utilization ratio drop
technology trend analysis) as possible

Generate as many new orders (including
hidden ones) as possible by leveraging scarcetalents or sales activities with problemsolving proposal

Develop solutions leading to proposals to solve
Focus on price/margin
customer issues while honing own capabilities

Determine prices based on added value
delivered to clients, not on man-months

to some extent

Our Value Chain
R&D

Manufacturing

Sales

Recruitment (incl. engineers
Training & education (incl.
requiring OJT or non-Japanese) strategic training)
Develop training contents
Overseas offshore
Reskilling/upskillingTechnical level tests
Nearshore in Japan
Foster less experienced
Skill data foundation & analyze M&As
Partially tolerate bench- Digital/core technologies
Career path models
Develop solution offerings- Solution offerings(Center of Excellence)

Dispatch(Help me do it!)
Project-type services(Do it for me!)Solutions(What should I do?)Follow technology trend(Center of Intelligence)

Copyright © TechnoPro Holdings, Inc. All rights reserved.

Procurement

14

Risk Recognition & Response Policy
Risk Recognition
Concern about cost structure
Worsening turnover●Turnover ratio for perm employees
FY15.6

FY23.6

9.4%

Response Policy
In addition to the initiatives in operations,strategically aim to
improve unit price by:

Expand Solution Business

9.1%

Shift-up/Charge-up

Wage hike●Wage growth rate of engineers*
Jul. ‘21

Jul. ‘24

+1.8%

+3.8%

Soaring hiring costs●Ratio of mid-career hiring
via recruitment agencies*37% engineer development

FY24.67.7%

FY18.6

 optimal allocation
within the GroupFY24.6
71%

Upfront investment
capacity ⇧Unit priceincrease ⇧(Hiring & Development)

Revenue ⇧Profit margin ⇧Attractive
projects ⇧Effective increase ofengineers

Key

Engineertreatment ⇧Engineerretention ⇧* Figures of two major subsidiaries in Japan (TechnoPro, Inc. & TechnoPro Construction, Inc.)
Copyright © TechnoPro Holdings, Inc. All rights reserved.

15

Initiatives in Operations• Implementing below listed specific initiatives regarding recruitment and turnover in operations to address recognized risks• Considering that the biggest reason why engineers leave their jobs is the lack of attractive assignments, it is crucial toacquire projects that can attract engineers and encourage them to continue working and contribute to theircareer development

To promote effective hiring

To curb turnover

Enhance employee referral channel

Acquire attractive projects

Promote collaboration with theGroup’s recruitment companies

Job market,
job seekers

Engineerson payroll

Expand recruitment of foreign
nationals

Promoterecruitment

Curb
turnoverCopyright © TechnoPro Holdings, Inc. All rights reserved.

Introduce AI engine
for turnover prediction
Personnel system dedicated tosolution talent

Enhance HTD (Hire-Train-Deploy)modelsStrengthen marketing for job
seekers (solutions, ESG, etc.)

Reinforce career advisor teams
Increase meeting with engineers

TechnoPro

Continue activities to infuse
corporate values

16Response Strategy: Leveraging Capabilities & Assets• Response strategies coincide with the approach of the medium-term plan; aiming to achieve synergy between demandand supply by leveraging the Group’s organizational capabilities and assets, such as a solid customer base, recruiting
competency and a large pool of engineers, continue honing the ability to achieve optimal allocation and engineer development,
thereby meeting customers’ needs regarding technological issues through the Core Business and the Solution

Capabilities & assets to be used as leverages for the Core Business and the Solution Business[Supply side][Demand side]

Various projects + Opportunities to grow, succeed

Technological innovation + Resolving of customer issues

Core Business＋
Hiring competency
more than 4,000
engineers/year

Solution Business

Diverse needs fromon-sites of 2,500
customers

Japan’s largest
engineer pool
Engineer Training
BusinessEngineer development
capability

B

Offshore capability

C

Copyright © TechnoPro Holdings, Inc. All rights reserved.

Optimal allocation
within the Group

A

17

Reference: Capability to Transform Engineer Structure• Succeeded to make massive shift from mechanical engineers to IT engineers over the past decade• Further refining abilities to achieve optimal allocation within the Group and development of engineers by leveraging
accumulated management capability which has accomplished transformation of engineer structure

FY15.6 End
Assigned Engineers: 11,315
150 (1.3%)
1,539(13.6%)

253(2.2%)
550(4.9%)

2,866(25.3%)

833(7.4%)
1,651(14.6%)
2,500(22.1%)+117.0%＋13,242

FY24.6 End
Assigned Engineers: 24,557

No. ofEngineers

322 (1.3%)643(2.6%)

3,060(12.5%)

機械
Machinery

3,503(14.3%)

電気・電子
Electric/Electronic859(3.5%)

1,964(8.0%)

3,686(15.0%)

2,281(9.3%)

8,239(33.6%)

973(8.6%)

組込制御 Control
Embedded
ソフト開発/保守SW
Development/Maintenance
ITインフラIT
infrastructure
化学Chemical
バイオ
Biochemical
建設
Construction

IT engineers:
38.1% / 4,306

IT engineers:
57.8％ / 14,206

その他
Others† Figures in parenthesis indicate the percentage of the total
Copyright © TechnoPro Holdings, Inc. All rights reserved.

18

Promotion of Optimal Allocation within the Group [ A ]• Continuously supply engineers from the Core Business to the Solution Business through training, while promoting shift-up
initiatives focusing on the price in the Core Business• Also promote the strategic shift of engineers to solution offerings with higher unit prices, once they have acquired
digital technologies and work experiences• Aim to establish a competitive cost structure differentiated from SIers or consulting firms by operating the Solution
Business with effective lead generation and securing of engineer resources based on the collaboration with the Core Business(Figures indicate FY24.6 results)

Shared customer base(manufacturers, SIers)

Core Business

Effective lead generation(Unit sales price: 646K yen/month)

Digital technologies

Sales reps
(705)

Close
collaboration

Engineers(annual ave. 20,158)

Engineers supplied:
680/year

Allocation focusing on price（promote shift-up)

Copyright © TechnoPro Holdings, Inc. All rights reserved.

Solution Business

External recruitment(266 engineers)(Unit sales price: 778K yen/month)

Shift engineers
Solution offerings(Unit sales price: 874K yen/month)Competitive cost structure
 Sales & marketing cost High utilization
19

Solution Business Positioning• In the Solution Business, plan to expand in specifically focused areas based on the customer base of the Core Businessand growth potential of the market

Solution
Business

Digital technologies

Particularly in staffing contracts, strive to grow as a vital
partner for SIers or SaaS vendors who perform well in digitaldomains by leveraging our capability to supply talents

Solution offerings

Provide deliverables or concepts targeting end users at onsites of manufacturers and others, etc., through project-typeservices in the growth areas<Focused solution offerings>
Major projects
Development area

Cloud

Generative AI Service
Make business efficient and swift by building an
automated telephone response system with natural
voices, company-specific bots based on in-house
documents, and a data analysis platform that uses AI toprovide data visualization and insights

IoT

Development of application linking with IoTFunctional design and development of an application thatcan remotely diagnose the condition of a vehicle byreading the vehicle identification number with asmartphone

Simulation

BIM model creation for construction and equipment
Create BIM models of the building and equipment basedon on-site surveys by first-class architects, renovation plan
designs, and data collected using ICT equipment

Product planning,development,
design, research
Operation Support
area
Order/demand
forecasting,procurement,
maintenance, HR,finance/accounting

Copyright © TechnoPro Holdings, Inc. All rights reserved.

20

Reference: Solution Business Track Record• In the Development area and the Operation Support area, the Group's focus, revenue and the number of assigned
engineers have increased significantly, and the unit sales price has exceeded that of the Solutions Business as a whole• In the Operation Support area, the growth in unit sales price has remained slow due to the impact of assignments as a mean
to provide OJT training

Revenue(million yen)

Development area

Ave. assigned
engineers(engineers/month)+39.5%+27.2%

Ave. unit sales price(thousand yen)

+9.7%

Solution offerings:- Development Efficiency- AI/Data Analysis- IoT/System
Development, Platform

Operation
Support area

【15.7%】【19.0%】【14.5%】+14.7%【16.2%】+13.7%+0.9%

Solution offerings:- ERP- Operational Efficiency- Cloud/Network【13.1%】【13.1%】【12.6%】† Figures in brackets for revenue and average assigned engineers indicate thepercentage of the Solution Business
Copyright © TechnoPro Holdings, Inc. All rights reserved.

【12.5%】

Solution Business total
Major domestic businesses total

21

Reference: Solution Potentials by Engineer Distribution• The potential of the Solution Business lies in the Group's engineers in IT and other fields (mechanical, electric/electronic,
chemical, biochemical, construction, etc.)• Offering solutions that utilize digital technologies such as predictive maintenance and remote diagnosis in the DigitalEngineering field, where ER&D (services concerning design and product development, mechanical design, etc.) and IT
overlap

Assigned Engineers Portfolios by “Industry” [Japan] and % of IT Engineers (FY24.6 End)
24,557

4,691

6,117

2,724

1,563

1,539

1,044
641
703
652
1,164

IT
98.7%

DigitalEngineering
field

Industrial
Machinery
43.7% Electronic

IT engineers (incl. Embedded Control, SW
Development/Maintenance, IT Infrastructure)
Copyright © TechnoPro Holdings, Inc. All rights reserved.

316

Others71.2%

Electricity/Gas/Public
68.6%
Transportation
Equipment
50.6%

3,403

Financial andSecurities
99.3%
Consumer
77.5%

Total
57.8%

(No. ofEngineers)

Component
34.4%

Medical
Device53.2%
Material
39.2%

Construction
and Plant Eng.
4.6%
Pharmaceuticaland Chemical
9.5%

Other

22

Training to Provide Value to Engineers [ B ]• By leveraging the Engineer Training Business within the group, accelerate the supply of engineers to the Solution
Business without solely depending on recruitment• Working with alliance partners to promote engineer training with increased OJT opportunities that enable prompt
allocation, as well as providing engineers capabilities in emerging technology areas where demand is expected to grow
FY23.6
Cumulative Total
No. of Trained Engineers
AI/ML
Data Science
Cloud Services
ERP

1,625
500
2,076
280
4,481

Total

23.6 EndNo. of Certifications*
AI/ML/Data Science
G Certification
E License
Python 3 Certified Engineer
Japan Statistical Society Certificate grade
2 or higher

Cloud
AWS
Azure
Salesforce
ERP

SAP

Training
outcomeTotal

H1

FY24.6

326
52
1,318
90
1,786

408
39
650
57
1,154

23.12 End

Alliance Partners

2,359
591
4,044
427
7,421
24.6 End

125
37
467

144
38
636

170
34
735

134

145

149

1,850
136
64

2,630
417
91

3,180
506
101

83
2,896

110
4,211

119
4,994

Digital technologies
Ave. Assigned Engineers (engineers/month)
AI/ML/Data Science
Cloud Services
ERP
Total

Copyright © TechnoPro Holdings, Inc. All rights reserved.

FY24.6
Cumulative Total

H2

FY23.6

345
498
204
1,047

FY24.6

354
601
230
1,185

YoY

+2.6%
+20.7%+12.7%+13.2%* Excluding certifications acquiredby retired engineers

23Enhance Global Offshore Capability [ C ]• In light of the sluggish performance of the Overseas Business in FY24.6 and the current progress of collaboration with Japan,
clarified the management policy for the Overseas Business again• Set a new goal for the remaining two years of the medium-term plan; getting “offshoring" and "supply of engineers toJapan” on track• Regarding the overseas subsidiaries engaged in recruitment (local-to-local staffing and placement), pursue strategic
alternatives during the mid-term plan period, as realizing synergies with Japan business is considered to be difficult<Overseas Business Strategy>
1. With India as the global hub, promote “offshoring” and “supply of engineers
to Japan” for the Solution Business in the medium to long term(especially focusing on Development area/Digital Engineering field) to
respond to the tight domestic engineer market
2. Overseas subsidiaries that do not fit the strategy will be sold to third parties during
the medium-term plan period
3. Reflecting on FY24.6 results, strengthen monitoring on operational investments
and more detailed KPI management (hired external professional to reinforce
operational support)

Overseas Business Revenue
Further
focus onsynergy withJapan
operations（billion yen）
Acquired recruitment companies
Copyright © TechnoPro Holdings, Inc. All rights reserved.

Acquired IT solution company

24

Contents

Page

I: Current Business Environment (Japan KPIs)

Ⅱ: Medium-Term Management Plan
“Evolution 2026” ProgressⅢ2

i : Financial Performance7ii : Initiatives for Remaining Two Years

13: Sustainability Management

Copyright © TechnoPro Holdings, Inc. All rights reserved.

26

25

Value Creation Process• Identified 4 material issues (materiality) with the social outcomes in mind: Human Resources, Technology, Social
Responsibility, and Governance• Enhancing economic value through steady execution of growth strategy, strive to realize the Group’s Purpose
CapitalMateriality

Value Creation Strategy

Social Outcomes

Human Capital Number of hires in Japan:
 Employee satisfaction index(overall):85.1％

 Number of assigned engineers in the
Solution Business:
4,751
 Number of employees undergoingtraining (cumulative):
308,000

Human
Resources
Raising Everyone’s
Potential

 Realize diversity and equal opportunity
Highly competitive
talent acquisition

Human Capital Strategy

Competent
Talents

Intellectual Capital

Evolution of Capabilities

Attractive work

Identification of customer issues andproposal and implementation of solutions

 Alliance ecosystems
 Expertise in hiring, training, and assigningengineers

Technology
Contributing toSociety through thePower of Technology

Business Strategy
Engineer Training
Business
DX Promotion

Social Capital●Average monthly orders:
1,950 orders/month●Business locations in Japan:
218●Number of customers in Japan:
2,555 companies(Number of customers at our two major
subsidiaries in Japan)

Core Business(Engineer Staffing)

Solution Business

Risk Management
SocialResponsibility

Financial Strategy

 Eliminate the shortage of technical personnel

Enhanced Economic Value

Utilization of technical knowledge
stored within the organization

Talent training
Reskilling Insight in diverse technical areas
 Expertise in delivering solutions

 Maximize opportunities for engineers

Growth Strategy Aimed at Value Creation

4,892

 Promote innovation
 Solve customer issues
through technology

Purpose Resolve social andenvironmental issues
through customers

Driving the Power ofTechnology and Talent toCo-create Value Together
with our Customers fora Sustainable Society

A Trusted Partner

ESG Strategy to Support Value Creation

Social Initiatives

Financial Capital ROE:

18.8％

 D/E ratio:

0.17x

 Net worth ratio:

52.9％

Environmental Initiatives
GovernanceCorporate Governance(● Pursue sustainability of the above outcomes)

A Sustainably
Growing Company

Copyright © TechnoPro Holdings, Inc. All rights reserved.

26

Sustainability Management Organization Structure• Sustainability Committee deliberates and makes decisions on matters relating to development, implementation, andoperation concerning essential issues required for execution of our Sustainability Policy• ERM Committee recognizes risks including personal information and information security, formulating risk management plans
and strictly monitoring their implementation• Established Management Development Committee in August 2023, systematically promoting recruitment, assignment,
training of management personnel from the perspectives of medium-term plan execution
Structural Chart

Audit & Supervisory
Committee

Board of Directors
Determination of basic policy
Supervision of maintenance and operation《Structure of Executive Functions》

Reporting

Reporting
Deliberation
Chair:
President, Representative Director and CEO
Vice-Chair: Managing Director and CFO
Members: Directors (full-time) (including
Audit & Supervisory Committee Member),and persons appointed by the Chair

Sustainability
Committee
Reporting
Deliberation

Compliance Committee
Cross-organizational
compliance and information security promotion
Chair:
Members:

Internal Reporting
SystemPresident, Representative
Director and CEO

ERM Committee
Strengthening ERM Initiatives

Audit

Executive officer in charge of General Affairs and CSR
Risk management officers of each company,and general managers of each related division

Strengthening Sustainability Initiatives
President, Representative Director and CEO
Chair:
Members: Directors (full-time) (including Audit & Supervisory
Committee Member) and persons appointed by the ChairManagement
Development Committee
Formulating, operating a dynamic portfolio planfor management personnel
Programming, realizing succession plans
Chair:
President, Representative Director and CEO
Members: Directors (full-time) and persons appointed by the Chair
Reporting

Each Risk Management
Department

Copyright © TechnoPro Holdings, Inc. All rights reserved.

Internal Audit

Board of Directors ofEach Subsidiary27

Human Capital Management• Based on the factors such as domestic labor market and technological trends that our customers are facing, aiming to becomea platform where engineers gather, grow, and thrive successfully• As our business is the embodiment of human capital management, human resources are sources of our value creation

Human Capital Management at TechnoPro Group• Structural shortage ofJapanese engineers• Labor fluidity anddiverse work styles

Engineers

Customers• Spread of digitaltechnologies andacceleration oftechnological innovation• Issues becoming moredifficult and complex

TechnoPro Group
GatherThriveGrow

Platform for Engineers
Copyright © TechnoPro Holdings, Inc. All rights reserved.

28

Human Capital Investment & Value Creation
Execute business strategies and create value through human capital initiatives(human capital KPIs impacts value drivers)

Value Driver

No. ofassigned
engineers

Initiatives

No. of recruitment,
turnover ratio

Utilize diverse talent

No. of engineers recruited
on a training premise, nonJapanese, seniors

Employee engagement
index (engineers)

GrowthRevenue(expectation)

企業
Shareholder
value
価値

Human Capital KPIs

Operatingprofitafter tax

ROIC

Gross
profitmarginSG&A
ratio torevenue

No. and amount of
Shift up/Charge-up
Unit
sales
price

No. of solutionrelated engineers
No. of training
attendees and hours
Overtime hours,
childcare leave taken

M&A&D

Copyright © TechnoPro Holdings, Inc. All rights reserved.

Pursue job satisfactionand employee
engagement

Optimal assignment
Strategically train
high value-added
talentActively invest in
reskilling/upskilling

Productivity

Health promotion,
work comfortability,
safety and health

Employee engagement
index (sales/back office)Pursue job satisfactionand employee
engagement(labor cost to revenue)

Invested
capitalIntroduce flexible
employment forms

Business Strategies<Core>• Further quality
improvement• Shift toward
software• Seek growthpotentials<Solution>• Focus on digitaldomain• Leverage assetsof Core Business• Overcome supply
constraints ofdomestic
engineers
Create synergy<Engineer
Training><DX Promotion>

29

Human Capital KPIs
• Most human capital KPIs in FY24.6 improved compared to FY23.6, except for a few items• Carry out root cause analysis of turnover rate and hours of training, thereby identifying and implementing countermeasures toimprove KPIs and value drivers

KPIs

FY23.6
Results

FY24.6
Results

TargetNumber of recruitment *1

4,597

4,892

3,000/year or above

Turnover ratio of permanent employeeengineers
Number of engineers recruited on a
training premise

7.7%

9.1%

At or below 7.5%

401

542

250/year or above

Number of non-Japanese engineers

1,068

1,210

1,500 *3

Number of engineers aged 60 and over

1,105

1,359

2,000 *3

Initiatives

Utilize diverse talent

Introduce flexible employment forms(Non-engineers)(Engineers)(Non-engineers)

Pursue job satisfaction and employee
engagement

Employee satisfaction

Optimal assignment

Average monthly unit sales price669K yen

678K yen

725K yen *3

Strategically train highvalue-added talent

Number of assigned engineers in the
Solutions Business

4,174

4,751

6,200 *3

Number of training attendees(cumulative)

303K/year

308K/year

360K/year *3

Hours of training (cumulative)

882,826h/year

790,559h/year

1,000,000h/year *3

Actively invest in reskilling/upskilling

Average hours of overtime
Health promotion,
work comfortability,
safety and health(Engineers)

84.6%(male)

21.0%

88.6%

(female)

96.4%

84.8%

(male)

41.8%

90.0% or above

87.3%(female)94.7%

Percentage of taking childcare leave

13.2h/month

12.5h/month

Productivity (personnel expenses torevenue ratio) *2

8.9%

8.8%

(male)(female)50% or above
100.0%*3
Maintain at 20h/month or
below

At or below 8.0%

Scope of calculation: domestic group companies, unless otherwise stated*1 Including non-engineers*2 TechnoPro Group consolidated*3 Target figures for the fiscal year ending June 2026
Copyright © TechnoPro Holdings, Inc. All rights reserved.

30

Mgmt. with Consciousness of Cost of Capital & Stock Price• With four capital policies, focus on creating value (ROIC > cost of capital) while maintaining solid financial foundation andplacing high importance on TSR• In principle, simultaneous disclosure in both Japanese and English; management members are proactively engaging in the
dialogue with investors, extracting ideas from their voices, and reflecting them into operations and strategy formulation

ROIC Based Management
M&A performance (FY24.6)• As a financial discipline for M&A, set ROIC target of 10% within 3 years from acquisitionand evaluate investment return and business portfolio through periodic strategic reviews• By using ROIC framework, calculate expected return in advance for various operational
investments such as recruitment and training/education, and evaluate these outcomes to justify

Evaluation from Market

Capital Policy(yen)• Capital policy- Dividend payout ratio: 50％ or above- EPS: sustainable growth- ROE: 20％ or above- D/E ratio: less than 1x

4,000
3,500
3,000

0

(3) Shareholder return by buyback

8.5％

IR meetings (FY24.6)*3
Speaker

1,000(2) Growth investment for M&A, etc.

Cost of capital (FY24.6)• Report feedbacks and requests frominvestors to the Board every quarter,and deliberate among the Directors

2,000

500

8.1％

• Engage in dialogue with more than 500
investors a year (about half of them areglobal institutional investors)

Historical
Stock Price*2
CAGR: 16.1%

2,500(1) Shareholder return by dividend

ROIC (FY24.6)*1

Dialogue with Investors

1,500• Capital allocation

Invested capital total*1 22,002 million yen

frequency

CEO

91

CFO

229

Other management/IR team(year)

Total

264
584

*1 Business entities consolidated into the Group through M&A after the TSE listing (excluding entities absorbed to TechnoPro, Inc.)*2 Calculated based on the number of shares after a three-for-one split of shares effective July 1, 2021
*3 Excluding participants at financial results briefing; for small meeting at the securities firm conference, the number of participating investors is counted
Copyright © TechnoPro Holdings, Inc. All rights reserved.

31

External Certifications/Recognitions• Selected as a constituent of all ESG investment indices used by the GPIF (Government Pension Investment Fund)• Selected as a constituent of the JPX Prime 150 Index, which began calculation in July 2023, based on return on capital(equity spread criteria)

ESG Indices adopted by GPIF

Other Indices

General ESG Index

Thematic Index

JPX Nikkei
Index 400

JPX Prime150
Index

FTSE Blossom Japan Index

S&P/JPX
Carbon Efficient Indices<Joint Index><Stock Selection>

NIKKEI 500
INDEXBest IR AwardFTSE Blossom Japan
Sector Relative Index

MSCI Nihonkabu ESG
Select Leaders Index

MSCI JAPANEMPOWERING WOMENINDEX (WIN)Award to recognize companies proactively
engaging in IR initiatives
Named as one of the Best IR Award winners
for two consecutive years from 2021

Certified Health and Productivity
Management Outstanding Organization(Large Enterprise Category)
Recognition for companies engaging in notable healthand productivity management
Named for five consecutive years from 2020

Morningstar Japan
ex-REIT Gender Diversity
Tilt Index

DX Certification
Certification to recognize companies ready for DX promotion
Selected first time on June 6, 2021
Renewed every two years, successfully
selected again in 2023

THE INCLUSION OF TechnoPro Holdings, Inc. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF TechnoPro Holdings, Inc. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCIINDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
FTSE Russell confirms that TechnoPro Holdings, Inc. has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Index. Created by the global index and data provider FTSE Russell, the FTSE Blossom Japan Index is designed
to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE Blossom Japan Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.

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32

Disclaimer
This presentation is based on the information we obtained or on the certain
assumptions that we understand to be reasonable. However, this is not for theCompany to represent or imply any guarantee to the accuracy or completeness ofthe contents.
Further, statement in this presentation may contain forward-looking informationthat could be impacted by various risks and uncertainties, and that may
significantly affect expected results. Therefore, it is to be noted not to entirely
rely on forward-looking information.
It should be also noted that this presentation or any statement herein is notallowed to make copy or transfer without our prior written consent.

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Copyright © TechnoPro Holdings, Inc. All rights reserved.