FY2024
Online Briefing on
Financial Results
March 26, 2024

ARTNER CO., LTD.

https://www.artner.co.jp/

This is SEKIGUCHI Sozo from Artner Co., Ltd.
Thank you all for attending the FY2024 Online Briefing on Financial Results today.
So, without further ado, let’s get right into the briefing.

1Company Information
Name

Artner Co., Ltd.

Founded

September 18, 1962

Representative President and CEO SEKIGUCHI Sozo
Share listing

Prime Market of the Tokyo Stock Exchange (Securities code: 2163)

General Meetingof Shareholders

Held in Osaka

Capital238,284,320 yen (As of January 31, 2024)

Headquarters

Tokyo, Osaka

Businessbases
Learning
centers
Business
fieldsNumber of
employees
LicensenumberYokohama, Utsunomiya, Osaka, 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
1,321 (As of January 31, 2024)
Worker Dispatching Business (派27－020513)
Paid Employment Agency Business (27－ユ－020355)

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved2

Before we get started, here is our company information.
Artner Co., Ltd. was founded on September 18, 1962.
Our shares are listed on the Prime Market of the Tokyo Stock Exchange.
Our securities code is 2163.

2

Investment Highlights

1

The Tenth Consecutive Period of Sales and Profit
Growthp. 3

2

Financial Summary for FY2024

p. 14

3

Progress Toward Achieving the Prime Listing Criteria

p. 26

4

Stable and Continuous Dividend Payments

p. 39

5

Reference

p. 43

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

3First, I’ll report on the last ten consecutive periods of sales and profit growth.

3

1

The Tenth Consecutive Period of Sales and Profit 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."*The share is 0.8 to 0.9%; calculations based on the Company’s most recent net sales of 101 billion yen for FY2024.

■ 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

120 123 117 119 129 137
102 107 112 110 115

50
0*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) 2024 Artner Co., Ltd. All Rights Reserved

4

The engineer dispatching industry, of which we are a part, has been growing steadily year
after year.
In addition, manufacturers—our main clients—are in a truly growing industry that has
steadily increased its R&D costs each year since the global financial crisis of 2008.

4

1

The Tenth Consecutive Period of Sales and Profit Growth

Factors Behind “The Tenth Consecutive Period of Sales andProfit Growth”■ Trust from our clients built on our long history

Over our long history of 61 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 tenth 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) 2024 Artner Co., Ltd. All Rights Reserved

5Here is a summary of the factors behind our ten consecutive periods of sales and profit
growth in these market conditions.
The first factor is the trust from our clients built on our long history.
Next is the business model developed by Artner over the past ten periods, and finally, theplacement of engineers in technical fields with high market needs.

5

1

The Tenth Consecutive Period of Sales and Profit 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) 2024 Artner Co., Ltd. All Rights Reserved

6

Our company was established in 1962 as Osaka Technology Center Co., Ltd. (Artner’s
former company name), a company engaged in the engineer dispatching business.

6

1

The Tenth Consecutive Period of Sales and Profit 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) 2024 Artner Co., Ltd. All Rights Reserved

7

In 1998, the company name was changed to Artner Co., Ltd.
In 2007, our company stock was listed on the JASDAQ.
In 2017, our stock listing moved to the Second Section of the Tokyo Stock Exchange.
The following year, in 2018, our stock listing moved up to the First Section of the Tokyo
Stock Exchange.
Then, in 2022, we transitioned to the Prime Market in conjunction with the market
restructuring of the Tokyo Stock Exchange. We also celebrated the Company’s 60th
anniversary of establishment as a veteran in the field of engineer dispatching.

7

1

The Tenth Consecutive Period of Sales and Profit GrowthPresidents Since Our Founding /Profile of President and CEO SEKIGUCHI Sozo
■Presidents Since Our Founding
September 1962

Osaka Technology Center Co., Ltd. was established as a subsidiary of
Sekiguchi Kogyo Co., Ltd.
(1st) President and CEO SEKIGUCHI Noboru was appointed.

April 1984

President and CEO SEKIGUCHI Noboru retired.
(2nd) President and CEO MARUHASHI Shiro was appointed.

April 1987

President and CEO MARUHASHI Shiro retired.
(3rd) President and CEO SEKIGUCHI Masaru was appointed.

April 1998

Osaka Technology Center Co., Ltd. was renamed to Artner Co., Ltd.

February 2002

President and CEO SEKIGUCHI Masaru retired.
(4th) President and CEO SEKIGUCHI Sozo was appointed.

■Profile of President and CEO SEKIGUCHI Sozo,
Positions and Areas of Responsibility Held in the Company
June 1983

Joined MEITEC CORPORATION

April 1988

Joined Osaka Technology Center Co., Ltd. (previous name of the Company)

March 1993

Appointed Director; Head of the Business Planning OfficeFebruary 1998

Appointed Director; Vice President

February 2002

Appointed President and CEO (current)

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

8

8

1

The Tenth Consecutive Period of Sales and Profit Growth

The Company’s Groups Corresponding to the Work Processesof Manufacturers■ 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 of
Manufacturers

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) 2024 Artner Co., Ltd. All Rights Reserved

9

As for the second point, I would like to explain our business model.
A characteristic of our engineer dispatching is that approximately 85% of our engineers are
assigned to upstream processes, the areas between R&D and product development.
This ensures profitability through high value-added services due to the higher contract unit
prices of engineers.

91

The Tenth Consecutive Period of Sales and Profit Growth

Diagram of the Work Processes of Manufacturers and
the Qork of the Company’s Engineers [Ex: electric vehicles (EVs)]
Basic design / Detailed design
Mechanical drawing Parts
drawing
Schematics
Bill of materials
Programming

R&D
Conceptual design

Prototyping, evaluation,
drawing modification
Quality inspection／
Assembly evaluation
Testing

End

Manufacturing,
operation,
maintenance

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

10

10

1

The Tenth Consecutive Period of Sales and Profit Growth

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) 2024 Artner Co., Ltd. All Rights Reserved

11

The third and final point is that we dispatch many of our engineers to projects with highengineering needs.
In particular, we select and assign many engineers to our main clients, automobile
manufacturers and auto parts manufacturers, as well as semiconductor manufacturing
equipment manufacturers.

11

1

The Tenth Consecutive Period of Sales and Profit Growth

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) 2024 Artner Co., Ltd. All Rights Reserved

12

12

1

The Tenth Consecutive Period of Sales and Profit Growth

Numerical Business Targets<FY2025 (final year) earnings and sales targets>

12,00015.9
15.1

Operating margin

The tenth consecutive
period of sales and profit growth

11.8

10,656
12.4

12.7

12.4

7,002

14.0

10,110

12.0

10.0

7,174

6,331

7.9

5,765
4,761

4.9

16.0

14.0

8,102

9.1
6,000

12.5

12.9

11,600

9,242

10.7

8,000

4,000

14.0 ％

Unit: million yen / %Net sales
10,000Operatingmargin11.6 billion yen

Net sales

8.0

5,153

4,287

6.0

4.0

3,856
2,000

2.0

0

0.0
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2025(est.)FY2025(proj.)

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

13

Because of these factors, we have now had ten consecutive periods of sales and profit
growth.
This fiscal year, we are now aiming to achieve our eleventh consecutive period of sales
and profit growth.

13

Investment Highlights

1

The Tenth Consecutive Period of Sales and Profit
Growthp. 3

2

Financial Summary for FY2024

p. 14

3

Progress Toward Achieving the Prime Listing Criteria

p. 26

4

Stable and Continuous Dividend Payments

p. 39

5

Reference

p. 43

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

14

Next, I will provide a financial summary for FY2024.

14

2

Financial Summary for FY2024

Financial Summary for FY2024
MarketEnvironmentState ofEngineer
Dispatching
Business

Expenses■ The global economy is heading towards a full recovery in tandem with growth in demand
post-COVID-19.
■ Interest in development remains strong in various industry fields, including our mainclients, manufacturers in industries related to automobiles and semiconductor
manufacturing equipment.
There is a strong demand for the Company’s engineers.
■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 upward trend in the demand for engineers.
Assignments for newly graduated engineers entering the Company in 2023 areprogressing ahead of the initial schedule.
■The unit price of engineers surpassed that of the same period of the preceding year.
Due to the trend of engineer shortage, the unit price for newly graduated engineers attheir first assignments is on the rise.
We are negotiating unit prices with our clients, taking into account the work
performance of our current engineers.
■Total work person-hours remained at the same level as the same period of the precedingyear.

■ In FY2023, we provided allowance to our employees in commemoration of the Company’s
60th anniversary. This allowance is not appropriated in FY2024.
Cost of sales grew more slowly.
■We are increasing our number of staff and engaging in recruitment advertising and otherforms of recruitment investment.
■Expenses for recruiting, travel, transportation, and others grew with a recovery in our
recruiting and sales activities.
Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

15

The market environment in FY2024 finally saw an increase in demand post-COVID-19.
The state of our engineer dispatching business has continued to be favorable due to anincrease in the number of operative personnel and a rise in the unit price of engineers.
Finally, regarding expenses, we are working to further strengthen our recruitment efforts
by increasing the number of recruitment staff and significantly expanding recruiting
expenses in response to the increasingly competitive recruitment market.
Because of this, expenses are currently rising.

15

2

Financial Summary for FY2024

Financial Results Highlights for FY2024■ Net sales up 9.4%, operating profit up 27.5%,

ordinary profit up 27.4%, profit up 17.5%. Operating margin 15.1%.

ResultPercentage

ResultPercentage

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

FY2023

FY2024

Changefrom theprevious
year
(%)

9,242

100.0

10,110

100.0

868

9.4

6,168

66.7

6,571

65.0

403

6.5

Gross profit

3,073

33.3

3,539

35.0

466

15.1

SG&A
expenses

1,879

20.3

2,016

19.9

137

7.3

Operating profit

1,194

12.9

1,522

15.1

328

27.5

Ordinary profit

1,203

13.0

1,532

15.2

329

27.4

895

9.7

1,051

10.4

156

17.5

Net sales
Cost of sales

Profit■Number of engineers
increased■Utilization rate remained high■The number of operative
personnel increased■Unit price of engineers rose

■60th anniversary allowance
provided to employees in
FY2023 but not
appropriated in FY2024■More staff, recruitment
advertising and otherrecruitment investment■Travel/transportation fees,
etc. increased due torecovery of recruitment
and sales activities

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

16

In light of these conditions, our financial highlights for FY2024 show a 9.4% increase in net
sales.
Operating profit went up 27.5%.
Ordinary profit went up 27.4%.
Profit went up 17.5%.
And our operating margin was 15.1%.

16

2

Financial Summary for FY2024

Net Sales by Business for FY2024■Engineer dispatching up 8.4% ■Contracting up 18.7% / Percentage 9.3%
Unit: million yen

Total: 10,110
10,000

FY2023

FY2024

Total: 9,242

9,000
8,000
7,000

ResultRatio

ResultRatio(millionyen)(%)(millionyen)(%)

Changefrom theprevious
year

Percentage
variance

(%)

(pt)

Engineer
dispatching

8,413

91.0

9,116

90.2

8.4

(0.9)

Contracting

794

8.6

943

9.3

18.7

0.7

Subtotal

9,208

99.6

10,059

99.5

9.3

(0.1)

Other

34

0.4

50

0.5

47.3

0.1

Total

9,242

100.0 10,110

100.0

9.4

6,000
9,116
8,413

5,000
4,000
3,000
2,000 794

943

1,000
50

34

―

0
FY2023

FY2024

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

17

Here are our net sales by business.
Engineer dispatching accounted for 90.2% of net sales, an increase of 8.4% over theprevious year.
The contracting business accounted for 9.3%, an increase of 18.7% over the previous
year.

17

2

Financial Summary for FY2024

Net Sales by Industry Field for FY2024■Electrical equipment up 6.3% ■Transportation equipment up 15.8%■Information and communications up 25.9%
Unit: million yen

Total: 10,059
10,000Total: 9,208

9,000

439

402
732

710

8,000

FY2023

Steel, nonferrous
materials andmetalsMechanicalequipment

FY2024

ResultRatio

ResultRatio(millionyen)(%)(millionyen)(%)

Changefrom theprevious
year

Percentage
variance

(%)

(pt)

439

4.8

402

4.0

(8.6)

(0.8)

710

7.7

732

7.3

3.1

(0.4)

Electricalequipment

2,669

29.0

2,838

28.2

6.3

(0.8)

Transportationequipment

3,233

35.1

3,745

37.2

15.8

2.1

3,000

Precisionequipment

951

10.3

838

8.3

(11.9)

(2.0)

2,000

Information andcommunications

985

10.7

1,240

12.3

25.9

1.6

Miscellaneous

218

2.4

262

2.6

20.3

0.2

Total

9,208

100.0 10,059

100.0

9.3

2,838
7,000

2,669

6,000
5,000
3,745

4,000

3,233

951

1,000
0

218

838

985

1,240

FY2023

FY2024262―*Excludes sales from "Other" businesses.

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

18

Here are our net sales by industry field.
Most notably, net sales of transportation equipment increased by 15.8%. This is theindustry in which our major clients, automobile and auto parts manufacturers, operate.

18

2

Financial Summary for FY2024

Net Sales by Technology Field for FY2024■Embedded / Model-Based up 18.1% ■IT Solution up 13.1%■Electronics up 2.9% ■Machinery up 5.7%
Unit: million yen

10,000

FY2023

Total: 10,059
Total: 9,208

ResultRatio

ResultRatio(millionyen)(%)(million
yen)

(%)

(%)

Embedded /Model-Based

2,717

29.5

3,209

31.9

18.1

2.4

IT Solution

911

9.9

1,031

10.3

13.1

0.4

Electronics

2,584

28.1

2,654

26.4

2.7

(1.7)

Machinery

2,993

32.5

3,164

31.5

5.7

(1.1)

Total

9,208

100.0 10,059

100.0

9.3

―

9,000
3,209
8,000

2,717

7,000
6,000

ChangePercentfrom theageprevious
varianceyear

FY2024

911

(pt)

1,031

5,000
4,000

2,584

2,654

3,000
2,000
2,993

3,164

1,000
0
FY2023

FY2024*Excludes sales from "Other" businesses.

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

19

Next, let’s look at our net sales by technology field.
Embedded / Model-Based technology went up 18.1%.
IT Solutions went up 13.1%.

19

2

Financial Summary for FY2024

Term-end Engineer Count by Technology Field for FY2024■ Embedded / Model-Based up 9.7%■ IT Solution up 0.7%
■ Electronics down 1.6%■Machinery up 1.7%
Unit: people

1,200

Total:1,157

Total: 1,192

FY2023

1,100
1,000

340

800
700

149

Result(people)

Ratio
(%)

Result(people)

Ratio
(%)

Embedded /Model-Based

340

29.4

373

IT Solution

149

12.9

Electronics

318

Machinery

350

373

900

FY2024

ChangePercentfrom theageprevious
variance
year
（%）

（pt）

31.3

9.7

1.9

150

12.6

0.7

(0.3)

27.5

313

26.3

(1.6)

(1.2)

30.3

356

29.9

1.7

(0.4)

1,192 100.0

3.0

―

150

600
500

318

313

400
300
200

350

356

Total

100

1,157 100.00FY2023

FY2024

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

20

Now let’s look at our term-end engineer count by technology field.
The number of Embedded / Model-Based engineers went up 9.7%.
IT Solutions engineers went up 0.7%.
Electronics went down 1.6%.
Machinery went up 1.7%.
The term-end engineer count was 1,192.

20

2

Financial Summary for FY2024

Net Sales by Region for FY2024■Kanto up 12.7% ■Tokai up 5.2% ■Kinki up 1.4%
Unit: million yen

Total: 10,059
Total: 9,208

10,0009,000

FY2023

602

542

8,000
7,000
6,058
6,000

FY2024

5,378

Ratio

ResultRatio(millionyen)(%)(million
yen)

(%)

(%)

(pt)

Tohoku

542

5.9

602

6.0

11.0

0.1

Kanto

5,378

58.4

6,058

60.2

12.7

1.8

37

0.4

41

0.4

10.6

0.0

Tokai

1,592

17.3

1,675

16.7

5.2

(0.6)

Kinki

1,412

15.3

1,433

14.2

1.4

(1.1)

Chugoku

145

1.6

148

1.5

2.1

(0.1)

Kyushu

99

1.1

100

1.0

1.0

(0.1)

Total

9,208

100.0 10,059

100.0

9.3

―

Hokuriku

5,000ResultChangePercentfrom theageprevious
variance
year

4,000
3,000

41

37
1,592

1,675

1,412

1,433

2,000
1,000

145
99

148
100

0
FY2023

FY2024*Excludes sales from "Other" businesses.

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

21

Here are our net sales by region.
Sales in Kanto went up 12.7%.
Sales in Tokai went up 5.2%.
Sales in Kinki went up 1.4%.
The Kanto region alone accounts for approximately 60.2% of net sales.

21

2Financial summary for FY2024

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) 2024 Artner Co., Ltd. All Rights Reserved

22

Next, I would like to explain our approach to net sales, expenses, and improving themargin percentages of the engineer dispatching business.
First, for net sales, we multiply the number of engineers by the utilization rate to calculate
the number of operative personnel.
We then multiply the number of operative personnel by the unit price of engineers andtotal work person-hours to get net sales.
The cost of sales shows the labor costs of engineers who are assigned to our clients.
SG&A expenses show the labor costs of engineers incurred during internal education andtraining, the labor costs of administrative staff positions, hiring expenses, and activity
expenses.
There are two key points to improving our margin percentages.
One is that we need to increase the average unit price of engineers to improve the grossmargin.
The other is to improve the operating margin. We will minimize the addition ofadministrative staff associated with the increase in engineers by improving administrative
efficiency, thereby suppressing the increase in the SG&A expense ratio.

22

2Financial Summary for FY2024

Engineer Hires for FY2024 / Turnover Rate
Newly Graduated Engineers
Joined in April

250

177

200

5
150
100

202

172

Unit: people

Weight given to
students in softwareand electronics fields

Joined in October
204
2
169
3

200
170
133
3

166

170

130

50
0
FY2021

FY2022

Turnover Eate

FY2023

10.9

11.3
9.6

10.0

7.3

10.8

7.7

Unit: people
100

80
58

60

10.3

5.0

FY2026（proj.）

100

Excluding retirement and turnover via the
Company’s assistance program to change jobs

11.7

FY2025（est.）

Number of Career Engineers (incl.
non-recent and recent graduates)

Unit: %

All

15.0

FY2024

8.3

40

50
32

29

FY2020

FY2021

35

Increase in users of20
our job change
assistance program

5.9

0

0.0
FY2020

FY2021

FY2022

FY2023

FY2024FY2022

FY2023

FY2024FY2025（proj.）

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

23

With that in mind, here are the number of engineer hires for FY2024 and our turnover rate.
First, in terms of newly graduated engineers, in FY2024, we recruited 130 engineers in thespring and three engineers in the fall, bringing the total number of engineers entering thecompany to 133.
For the upcoming year, FY2025, our plan is to recruit 170 new graduates in the spring.
And for the following year, FY2026, we are currently working toward a planned number of
200 hires.
As for the number of career engineers, in FY2024, 58 people entered the company.
Our budget for FY2025 is based on a plan to hire 100 career engineers.
Our turnover rate has generally remained around 10%.

23

2

Financial Summary for FY2024

Term-end Engineer Count / Utilization Rate for FY2024
Term-end Engineer
Count

FY2023 (average)(people)1,166

Unit: people

1,400
1,200

1,216

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

FY2024 (average)

1,192

1,182

1,000

1,209

1,157

1,249

October 2023
3 newly
graduatedengineers joined

April 2023
130 newly graduatedengineers joined

800
600

43
1,207

1,237

3.6
1,192
58 career engineers(incl. non-recent andrecent graduates) joined

Turnover rate (all) 10.9%

400
200
0

(excl. job change
assistance, etc.) 8.3%

FY2023End of Q1(Apr.)

Utilization Rate

FY2024End of Q2(Jul.)End of Q3(Oct.)*Based on the numberof dispatched engineers

End of Q4(Jan.)End of Q1(Apr.)FY2023 (average)

End of Q2(Jul.)FY2024 (average)

98.1
98.3

98.0

97.0

98.5

98.5

98.4

96.0

90.0

Change from theprevious year

98.3
98.2

97.8

0.2
99.0

Recoverytrend in the
demand forengineers

94.0
92.0

End of Q4(Jan.)(pt)

Unit: %

100.0

End of Q3(Oct.)FY2023End of Q1(Feb. to Apr.)

FY2024End of Q2(May to Jul.)End of Q3
End of Q4
End of Q1(Aug. to Oct.) (Nov. to Jan.) (Feb. to Apr.)

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

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

24

Next, let’s look at the term-end engineer count and the utilization rate.
The term-end engineer count was 1,209, which is 43 engineers more than the previous
year.
The utilization rate was 98.3%, a 0.2% improvement over the previous year.

24

2

Financial Summary for FY2024

Unit Price of Engineers / Total Work Man-hours for FY2024
Unit Price of Engineers

FY2023 (average)

Change from the Change from theprevious year
previous year

FY2024 (average)(yen)*Figures for dispatched engineers *Per person

4,198

4,331

(%)

133

3.2

Unit: yen / hour

4,400
4,350
4,300
4,250
4,200
4,150
4,100
4,050
4,000

4,203

4,170

4,211

4,207

FY2023End of Q2(May to Jul.)

Total Work Personhours

End of Q3(Aug. to Oct.)

End of Q4(Nov. to Jan.)FY2023 (average)

160
150

GoldenWeek holidays

166

Summerleave

New Year’s
holidays

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

End of Q4(Nov. to Jan.)

Change from the Change from theprevious year
previous year

FY2024 (average)

166

(%)

1

GoldenWeek holidays

172
166

163

161

FY2023End of Q1(Feb. to Apr.)

End of Q1(Feb. to Apr.)

(h)

172

170

Due to the trend of engineer
shortage, the unit price for newly
graduated engineers at their firstassignments is on the rise

165

*Figures for dispatched engineers *Per person

180

4,258

FY2024End of Q1(Feb. to Apr.)

Unit: hour / month

4,378

4,355

4,334

0.1

Summerleave

New Year’s
holidays

163
161

FY2024End 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.)End of Q3(Aug. to Oct.)

End of Q4(Nov. to Jan.)

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

25

These graphs show the unit price of engineers and total work person-hours.
The average unit price of engineers was 4,331 yen, an increase of 133 yen over theprevious year.
Total work person-hours was 166 hours.
This is one hour more than the previous year.

25

Investment Highlights

1

The Tenth Consecutive Period of Sales and Profit
Growthp. 3

2

Financial Summary for FY2024

p. 14

3

Progress Toward Achieving the Prime Listing Criteria

p. 26

4

Stable and Continuous Dividend Payments

p. 39

5

Reference

p. 43

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

26

Moving on, I would like to report on our progress toward achieving the Prime Market listing
maintenance criteria.

26

3Progress Toward Achieving the Prime Listing Criteria

Progress Toward Achieving the Prime Listing Criteria■Compliance With the Listing Maintenance Criteria of the Prime Market
Not met as of transition standard date (June 30, 2021)

Listing maintenancecriteria

The Company

As of transition
standard dateof June 30, 2021

As ofJan. 31, 2024*(1)

Number of
tradable shares

Tradable sharemarketcapitalization

20,000 units

10 billion yen

35% 20 million yen

49,748 units

4.1 billion yen

46.8% 28 million yen

74,145 units

14.9 billion
yen

The ratio oftradable shares

69.7%

Average daily
trading value

118 million
*(2)

yen

*1 The Company’s compliance is calculated based on the distribution of the Company’s stock certificates, etc. as understood by the Tokyo Stock
Exchange as of the standard date.
*2 The average daily trading value is based on the data notified by the Tokyo Stock Exchange for the period from January 1 to December 31, 2023.

■Progress

The “tradable share market capitalization” criterion was unmet. However, as a result of
implementing various measures, compliance was achieved as of January 31, 2024, a year
ahead of the scheduled year, FY2025.
Efforts will continue to be made to further increase enterprise value and enhance IR activities
for stable compliance.
Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

27

The listing maintenance criteria for the Prime Market are 20,000 units of tradable shares, a
tradable share market capitalization of at least 10 billion yen, a 35% ratio of tradable
shares, and an average daily trading value of 20 million yen.
In contrast, as of June 30, 2021, the transition standard date, we had 49,748 units of
tradable shares, a tradable share market capitalization of 4.1 billion yen, a 46.8% ratio oftradable shares, and an average daily trading value of 28 million yen.
Now let’s look at our progress as of January 31, 2024.
Our number of tradable shares has increased to 74,145 units.
The tradable share market capitalization is 14.9 billion yen, the ratio of tradable shares is
69.7%, and the average daily trading value is 118 million yen.

27

3Progress Toward Achieving the Prime Listing Criteria

KPI Requirements for Compliance with Tradable Share Market
Capitalization / Status
KPI Requirements / Actual
As of transition
standard date ofJune 30, 2021

As of
Jan.31, 2024

Requirement

46.80%

69.7%

70%

The ratio oftradable shares

Number of
4,974,000
tradable sharesshares7,414,000 7,439,000
sharesApr. 2022
Secondary offering

As of transition
standard date ofJune 30, 2021

As ofJan. 31, 2024

Requirement

Price earnings
ratio (PER)

12.5 times 22.3 times 15.0 times

Earnings per
share (EPS)

68.59 yen 98.99 yen 93.34 yen

Stock price858 yenshares2,012 yen(*) 1,400 yen*Average daily closing price over a three-month periodprior to the last day of the fiscal year, etc.

Tradable share market capitalization

As oftransition
standard Date

4.1

billion yen

As ofJan.31, 2024

14.9

Requirement

10

billion yen

billion yen■Progress

As of January 31, 2024, compared to the transition standard date, tradable sharemarket capitalization increased by 10.8 billion yen (3.6 times), stock price by 1,154 yen(2.3 times), and earnings per share by 30.40 yen (1.4 times).

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

28

Next, let’s look at the KPI requirements for compliance with tradable share market
capitalization and our progress.
As shown on the previous page, as of January 31, 2024, the tradable share market
capitalization increased by 10.8 billion yen, or approximately 3.6 times.
The stock price increased by 1,154 yen, or approximately 2.3 times.
Earnings per share increased by 30.40 yen, or approximately 1.4 times.

28

3Progress 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.
⇒ April 2022: Conducted a secondary offering and increased the ratio to 69.7%.

■Increase Earnings Per Share (EPS)1

Aim to expand the scale of our business by building an internal system ofrecruitment, training, and sales with carbon neutrality as a main pillar of ourbusiness activities

2

Conduct M&As and other activities to acquire new technical fields ofexpertise (e.g., chemistry, civil engineering and construction)⇒ 98.99 yen (up 17.5% year-on-year). Higher than the 93.34 yen target.
■Increase

Payout Ratio

Shareholder Returns
To beconsidered

Total Return Ratio

Based on 30%

Raise to 50%⇒ Implemented since FY2022

Share buyback⇒ Consider as appropriate based on the situation■Improve Capital
Efficiency

Return On Equity (ROE)Over 20% (aim for FY2018 actual 26.9%)⇒

25.3% (FY2024).
Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

29This page summarizes our measures to achieve the KPI requirements, their evaluation,and future issues.
First, to increase the ratio of tradable shares, we conducted a secondary offering of sharesin April 2022 and increased the ratio to 69.7%.
We increased earnings per share to 98.99 yen, above our target of 93.34 yen.
To increase shareholder returns, beginning in the fiscal year ended January 31, 2022, we
implemented an increase in the payout ratio from a base of 30% to 50%.
As for our total return ratio, we will consider and implement share buybacks as appropriate
based on the future situation.
To improve capital efficiency, we aimed for an ROE of over 20% and achieved 25.3% in
FY2024.

29

3Progress Toward Achieving the Prime Listing Criteria

Measures to Achieve the KPI Requirements, Their Evaluation,
and Future Issues (IR)■Strengthen Information Dissemination for Individual
and Institutional Investors

Hold briefings for individual and institutional investors (online or in-person)(for individual investors: 3 to 4 times a year; for institutional investors and analysts:
twice a year)
One-on-one meetings with institutional investors (phone or online)⇒ The planned number of briefings was held. Awareness increased (survey).
⇒ One-on-one meetings with institutional investors increased.
Future issue

Continue to hold the same number as in FY2024.

■Increase English-language Disclosures with Foreign Investors in Mind
Disclosed the main corporate pages and IR pages of our website in English⇒ Disclosed “Briefings for Analysts and Institutional Investors” and“Annual Securities Reports” in English.
Future issue

Continue to make English disclosures before the Tokyo Stock
Exchange makes English disclosures mandatory in March 2025.

■Disseminate Non-financial Information⇒ Disclosed the Annual Report.
Future issue

Disclose human capital-related ESG data on our website, etc.

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved30This page shows our IR activities related to our measures to achieve the KPI
requirements, their evaluation, and future issues.
To strengthen information dissemination for individual and institutional investors, we haveincreased the number of occasions for actively disclosing information to the market.
To increase English-language disclosures with foreign investors in mind, we are releasing
the “Briefings for Analysts and Institutional Investors” and “Annual Securities Reports” inEnglish.
To disseminate non-financial information, we are releasing an Annual Report.

30

3Progress 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 by2•

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)segment

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

31

Next, I will explain the basic policy and measures in our Medium-Term Business Plan for
FY2023 to FY2025, which we are currently pursuing in order to make progress towardachieving the Prime Market listing maintenance criteria.

313Progress 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) 2024 Artner Co., Ltd. All Rights Reserved

32

In particular, regarding our approach to sustainable growth and next-generation growth,
we are actively placing engineers in projects targeting carbon neutrality to achieve highvalue-added profitability.

32

3Progress Toward Achieving the Prime Listing Criteria

Our Recruitment, Training, and Sales Efforts with an Eye
to Carbon Neutrality
Recruitment

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

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

FY2025(target)FY2024(result)

55.0%

46.1%

● 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 Improve
Business 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

FY2025(target)FY2024(result)

50.0%

48.3%

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

33

These are our recruitment, training, and sales efforts with an eye to carbon neutrality.
We are currently working toward these recruitment targets, education themes, and sales
targets.

33

3

Progress Toward Achieving the Prime Listing Criteria

Numerical Business Targets <FY2025 (final year) key indicators>
Number ofengineers

1,600
Recruitment of
new graduates :Career hires

As of year-end / Unit: people
Dispatched :Contracting

9:1

1,600

1:1
1,600

1,400
1,157

1,200
1,000

901

800
600

1,192

1,073

543

569

FY2014FY2015

601

654

716

971

785

400
200
0
FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2025（proj.）

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

34

Finally, we are aiming to bring our number of engineers to 1,600.
We are aiming for a ratio of 9:1 dispatched engineers to contracted engineers.
The following pages summarize our efforts to recruit new graduates and career hires toreach our goal of 1,600 engineers.

343Progress Toward Achieving the Prime Listing Criteria

Efforts to Reach 1,600 Engineers
Recruitment of
New Graduates

FY2025 Forecast

Recruitment
Activities

Career Hires
FY2025 Forecast

Recruitment
Activities

Target for April 2025 hires: 200 engineers(up 17.6% from 170 engineers in the preceding year (forecast))
Investment
expenses

Up 17.1%

Request university professors to introduce students to Artner (make first-time visits to science and engineering universities inJapan, actively visit schools whose graduates we have previously hired)
Hold university laboratory seminars by our engineers who are alumni of that university; organize gatherings and one-on-one
interviews with university alumni
Utilize web media, exhibit at off-campus joint company information sessions, exhibit at events for international students
Utilize employment agencies, utilize employee referral system
Build relationships with university professors and university career centers through industry-academia collaboration (participationin academic societies, part-time lecturers at universities, etc.)
Hold internship programs (increase the Company’s name recognition) and tours of our learning centers (training facility)

Target for FY2025 hires: 100 engineers(up 72.4% from 58 engineers in the preceding year)
Investment
expenses

Up 34.7%

Actively hire year-round not only people with experience but also talented non-recent graduates with no experience
Utilize employment agencies, utilize web media, utilize employee referral system, utilize “Hello Work” employment service
Exhibit at job fairs; manage a career hire recruitment website
Increase the number of staff and enhance their skills to improve the job offer acceptance rate
Visit universities to hire postdocs

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

35

35

3

Progress Toward Achieving the Prime Listing Criteria

Efforts to Reach 1,600 Engineers
PR Content Across All
Recruitment Activities
Provision of jobs and an enabling environment
We will provide engineers with good jobs and a good training environment, and we will further enhance ourbenefits including a secure salary. We will offer career paths and skill improvement plans.

Job-based employment
We have projects for upstream, midstream, and downstream processes. By joining the Company, starting
careers from midstream, and transitioning projects, employees can complete their career advancement to
upstream internally.

Emphasizing the job change assistance program to differentiate from other companies inthe same industry
In a survey for new hires, approx. 80% responded that they found our job change assistance program to be“attractive.”
The program works to our favor when employee candidates compare the Company with other companies inthe same industry.

Improving the Turnover Rate
During the COVID-19 pandemic, the number of engineers returning to Artner for training after projects werecompleted increased from previous years, resulting in a higher turnover rate. However, with the recovery fromthe pandemic, the turnover rate is expected to improve to the previous years’ level.
Sales representatives will visit engineers regularly or conduct online interviews to maintain close communication.

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

36

As for the PR content across all of our recruitment activities, we are promoting ourprovision of jobs and an enabling environment, as well as job-based employment, andemphasizing our job change assistance program to differentiate ourselves from othercompanies in the same industry for better recruitment success.
To improve the turnover rate, we are following up on our engineers in various ways.

36

3

Progress Toward Achieving the Prime Listing Criteria

Forecast of Financial Results for Reporting Period 63(Fiscal year ending January 31, 2025) / Prerequisites■ In FY2025, the market environment will move faster toward a full recovery in the aftermath of COVID-19.
■ Our strategically important clients, such as automobile-related manufacturers and semiconductor
manufacturing equipment-related manufacturers, are projected to further increase their development speed.
■ The demand for Artner’s engineers is projected to remain strong.

【Forecast of Financial Results】
FY2024
Result(million yen)

FY2025% ofNet sales

Result(million yen)

% ofNet sales

Change from Change fromthe previous the previous
year
year
(million yen)(%)

Net sales

10,110100.0

10,656

100.0

546

5.4

Operating profit

1,522

15.1

1,696

15.9

174

11.4

Ordinary profit

1,532

15.2

1,700

16.0

168

10.9

Profit

1,051

10.4

1,178

11.1

127

12.1

【Prerequisites】
Newly graduated engineers(April, October) (people)
Number of career engineers (incl. nonrecent and recent graduates) (people)
Turnover rates (%)
Utilization rates (%)

98.3

Unit price of engineers (yen)4,331

Total work man-hours (h)

166

133

170

37

27.8

58

100

42

72.4

10.9

Decreased YoY
Same level as
preceding year
Increased YoY
Same level as
preceding year
Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

37

Now I would like to explain our forecast of financial results for FY2025 and theprerequisites for those results.
Regarding the market environment in FY2025, we expect our client manufacturers tocontinue to move faster toward a full recovery in the aftermath of COVID-19.
The second point is that our strategically important clients, such as automobile-related
manufacturers and semiconductor manufacturing equipment-related manufacturers, arefurther increasing their development speed.
The third point is that demand for Artner’s engineers is projected to remain strong.
Based on these market conditions, we expect a 5.4% increase in net sales over theprevious year.
We expect operating profit to increase by 11.4%.
We expect ordinary profit to increase by 10.9%.
And we expect profit to increase by 12.1%.
The prerequisites for this forecast are listed on this page.

37

3Progress Toward Achieving the Prime Listing Criteria

Differences Between the Financial Results Targets in the MediumTerm Business Plan and the FY2025 Forecast of Financial Results

Number of engineers(people)Net sales(million yen)

Operating margin (％)

Number ofengineers

Changefrom thepreviousyear

Changefrom thepreviousyear（％）

10,656

(944)

(8.1)

15.9

1.9

Final year of
Medium-TermBusiness Plan

Fiscal year ending
January 31, 2025
forecast

1,600

Not expected toachieve theMedium-TermBusiness Plan

11,60014.0―

Not expected to achieve the Medium-Term Business Plan target due
to more competitive recruitment environment

Net sales

Not expected to achieve the Medium-Term Business Plan target as
the number of engineers is not expected to achieve the target

Operating margin

Expected to be higher than the Medium-Term Business Plan target
due to the increasing unit price of engineers

Strive to increase the number of engineers by increasing the number of newly graduatedengineers (October) and career engineers (including non-recent and recent graduates),
controlling engineer turnover, etc.
Compensate for the shortage of engineers by increasing the unit price of engineers.
Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

38

Next, I will explain differences between the financial results targets in the Medium-TermBusiness Plan and the FY2025 forecast of financial results.
The planned term-end engineer count in the final year of our Medium-Term Business Planis 1,600 engineers.
However, our forecast for the fiscal year ending January 31, 2025 is that we will notachieve this target.
We will also fall short of our net sales target of 11.6 billion yen by 944 million yen.
We expect our operating margin to be 15.9%, which is higher than our target of 14.0%.
To summarize, we do not expect to achieve the Medium-Term Business Plan target for thenumber of engineers due to the increasingly competitive recruitment environment.
Because we do not expect to achieve the target number of engineers, we do not expect toachieve the Medium-Term Business Plan net sales target.
We do expect our operating margin to exceed the Medium-Term Business Plan target due
to the higher unit price of engineers.
In particular, regarding the forecasted shortfall in the number of engineers, we will continue
to work to increase this number by recruiting newly graduated engineers in the fall, hiring
additional career engineers, and reducing the number of engineers who leave thecompany.
Our approach is to compensate for the shortage in the number of engineers by increasing
the unit price of engineers.

38

Investment Highlights

1

The Tenth Consecutive Period of Sales and Profit
Growthp. 3

2

Financial Summary for Q2 FY2024

p. 14

3

Progress Toward Achieving the Prime Listing Criteria

p. 26

4

Stable and Continuous Dividend Payments

p. 39

5

Reference

p. 43

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

39

Lastly, I would like to report on stable and continuous dividend payments.

39

4

Stable and Continuous Dividend Payments

FY2024 / FY2025 Dividend Per Share
Payout Ratio

FY2024 75.8% / FY2025(forecast)72.1%

Based on 50%■FY2024… Ordinary dividend(Year-end)37.5 yen. Combined with the interim dividendof 37.5 yen, the total ordinary dividend was 75.0 yen.
■FY2025…Expected annual dividend 80.0 yen ((interim 40.0 yen, year-end 40.0
(forecast)yen) (Up 5.0 yen year-on-year)
Annual dividends per share(yen)
Ordinary dividend
Secondquarterend

Fiscalyear-end

FY2023

20.00

23.00

43.00

FY2024

37.50

37.50

FY2025(forecast)

40.00

40.00

Total

Dividendyield(%)

Commemorative
dividends

Total

17.00

60.00

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

6.96

71.2

16.7

75.00

7.45

75.8

19.2

80.00

3.70

72.1

*Dividend yield (%) = individual dividend per share (total) ÷ share price (year-end, closing price) × 100
Closing value at ending of FY2023 (January 31, 2022) 862 yen / Closing value at ending of FY2024 (July 31, 2023) 1,828 yen / Closing value at ending of FY2025 (January 31, 2024) 2,161 yen

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

40This page shows the dividend per share in FY2024 and FY2025.
Our payout ratio, which is based on 50%, was 75.8% in FY2024.
The ratio is forecast to be approximately 72% in FY2025.
In FY2024, the year-end dividend will be 37.5 yen, and combined with the interim dividendof 37.5 yen, the annual ordinary dividend is forecasted to be 75.0 yen.
In FY2025, we plan to pay an interim dividend of 40.0 yen and a year-end dividend of 40.0
yen, for a total annual dividend of 80.0 yen.
We expect the dividend to be paid to be 5.0 yen more than in the previous period.

40

4Stable and Continuous Dividend Payments

Dividend Per Share■We intend to increase our profit every year and determine a dividend amount thatwill not fall below the previous year’s amount, based on a payout ratio of 50%.

Unit: yen

80
75
70

Ordinary dividend (interim)

65

Ordinary dividend (year-end)

60

45
40
Celebrates the 55th
anniversary of its
founding. the 10th
anniversary oflisting on JASDAQ(now Prime Market)

35
30
25
20
15

0

60.00
40.00
37.50
17.00

50

5

75.00

Celebrates the 60th
anniversary of its
founding. The 15th
anniversary oflisting on JASDAQ(now Prime Market)

Commemorative dividend

55

10

80.00

Dividend increased for the Tenth consecutive period

5.00
2.50
2.50
FY2014

6.25
3.75
2.50
FY2015

8.75

11.25
6.25

Stock listing moved
up to the First
Section of the Tokyo
Stock Exchange inJuly 2018.

Payout ratio rose to 50%

34.50
23.00

18.00
15.00

2.50

7.50

8.00

1.00

20.50
10.50

23.00

20.50

11.50

14.00

6.50

7.50

11.50

5.00

10.00

3.75
FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

5.00

37.50

40.00

FY2024FY202520.00

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) 2024 Artner Co., Ltd. All Rights Reserved

41This graph shows the trends in dividend per share.

41

4Stable and Continuous Dividend Payments

Numerical Business Targets <FY2025 (final year) key indicators>

ROE
30.0
25.0
20.0
15.0
10.0
5.0
0.0

26.9

FY2018

Payout ratio
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

20% or more

(Aim to achieve FY2018 actual level of 26.9%)
Unit: %

25.2

FY201924.2

FY2020

23.5

21.5

21.7

FY2021

FY2022

FY2023

50% or more

25.3

FY2024

Unit: %

75.8

71.2

72.1

50.3
33.1

35.4

35.5

FY2018FY2019FY202038.9

FY2021

FY2022

FY2023

FY2024FY2024(est.)

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

42

Here are the trends in ROE and the actual and forecasted dividend payout ratio.

42

Investment Highlights

1

The Tenth Consecutive Period of Sales and Profit
Growthp. 3

2

Financial Summary for FY2024

p. 13

3

Progress Toward Achieving the Prime Listing Criteria

p. 26

4

Stable and Continuous Dividend Payments

p. 39

5

Reference

p. 43

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

43Page 43 and beyond are reference materials.
I would like to pick a few points to explain.

43

5Reference

Company Motto / Management Philosophy /Origin of the Company Name Corporate Logo

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

Corporate Logo

Our corporate logo was designed with a motif of shimmering water droplets that evoke fresh andclear ideas with a futuristic taste. Each droplet also represents our proud engineers individually,
forming an “A (Artner)” that stands for a group of excellent talents. Furthermore, each opening of
the droplets signifies our open-mindedness to freely incorporate and disseminate different ideas.
Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

44First of all, you will see our company motto, followed by our management philosophy,
which is “‘Engineer Support Company’: We support our engineers’ dreams.”

44

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) 2024 Artner Co., Ltd. All Rights Reserved45

Our purpose is:“Support the growth and self-actualization of engineers, who are Japan’s world-classassets.”45

5Reference

To Achieve Our Purpose

MissionAs an “Engineer Support Company,” we are committed tocreating “a new way of life” for engineers.

VisionWe will improve the quality of our engineers to become,within 10 years, a group of engineers providing the greatest
added value in the industry. The talents developed byArtner will support the world of manufacturing.

ValuesCompetent engineers are capable of selecting what theyneed, and making every effort to attain happiness forthemselves. Artner supports the career and skill
development of each and every engineer to offer a wide
range of projects that fit with their desires and qualifications.

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

46

46

5

Reference

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) 2024 Artner Co., Ltd. All Rights Reserved

47

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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.

Artner Co., Ltd.

Fixed-term
employment
dispatch

Employment relationshipcontinues as engineers are
regular employees

Dispatch period

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

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5

Reference

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) 2024 Artner Co., Ltd. All Rights Reserved

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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,
Hitachi Astemo, BOSCH, Honda Motor, etc.

Electronic
devicesKIOXIA Engineering, Tokyo Electron, Panasonic, Lasertec, etc.

Precisionequipment

SHIMADZU, Terumo, NIKON, etc.

Mechanicalequipment

SMC, Komatsu, JTEKT, DISCO, etc.

Information andcommunications

Hitachi Hi-System21, FUJI SOFT INCORPORATED,
Mitsubishi Electric Software, 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 1,200 companies
Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

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Reference

Top Ten Corporate Clients by Net Sales in FY2024■Top Ten by Net Sales (Standard company name used)
FY2023

1
2
3
4
5
6
7
8
9
10

FY2024

Our clients

Segment

Our clients

Segment

Honda Motor Co., Ltd.

Honda Motor Co., Ltd.

Honda R&D Co., Ltd.

Transportationequipment
Transportationequipment

Honda R&D Co., Ltd.

Transportationequipment
Transportationequipment

Nikon Corporation

Precision equipment

Nikon Corporation

Precision equipment

Terumo Corporation

Precision equipment

Bosch Corporation

Transportationequipment

Sumitomo Electric Industries, Ltd.

Steel, nonferrous
materials and metals

Lasertec Corporation

Electronic devices

Tokyo Electron Miyagi Ltd.

Electronic devices

Terumo Corporation

Precision equipment

Bosch Corporation

Transportationequipment

Sumitomo Electric Industries, Ltd.

Steel, nonferrous
materials and metals

Lasertec Corporation

Electronic devices

Tokyo Electron Miyagi Ltd.

Electronic devices

Tokyo Electron Technology Solutions Limited

Electronic devices

Hitachi Astemo, Ltd.

SMC Corporation

Mechanicalequipment

SMC Corporation

Transportationequipment
Mechanicalequipment■Net Sales Per 10 Companies
FY2023Result(million yen)Top 10
Top 11 to 20
Top 21 to 30
Other than the
above

4,161
1,329
884

Total

FY2024
ResultRatio(million yen)

(%)

45.2
14.4
9.6

Change fromthe previous
year
（%）

Ratio
(%)

4,586
1,483
976

45.6
14.8
9.7

10.2
11.6
10.4

2,832

30.8

3,012

29.9

6.4

9,208

100.0

10,059100.0

9.3

Percentage
variance

（pt）

0.4
0.3
0.1
(0.8)
―

*Excludes sales from "Other" businesses.
Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

51

Here are our top ten client companies by net sales in FY2024.
The top ten clients consist of automobile manufacturers, auto parts manufacturers, andsemiconductor manufacturing equipment manufacturers.

51

5

Reference

Internal Programs that Can be Chosen by Engineers

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

LimitedArea
SystemEngineers 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
Assistance
ProgramIf 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) 2024 Artner Co., Ltd. All Rights Reserved

52

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Reference

What is the Job Change Assistance Program?
Basic Policy

Benefit to
Our 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 to
Our Engineers

Benefit to
ArtnerEngineers 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 anddid not consider joining Artner to become
interested and decide to join
the Company upon comparing it
With other companies.

Recruitment

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

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) 2024 Artner Co., Ltd. All Rights Reserved

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Reference

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 their hometowns,” and “to shift to employment with a manufacturer.”

Entry into theCompany

Education andtraining

Placement

High ValueGroup

Retirement age

Continued employment
programExpertManagerial
position

Wide ValueGroup

Training manager

Product ValueGroup

Job change
assistance program

Job change

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

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5

Reference

Business Locations
Headquarters

Tokyo, Osaka

Business bases

Yokohama, Utsunomiya,
Osaka, Nagoya

Learning centers

East Japan, West Japan

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

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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) 2024 Artner Co., Ltd. All Rights Reserved

56

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5

Reference

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.

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.

Collaboration with Academic Societies andOrganizations

Skill Development Papers

We present papers at affiliated academic
societies and organizations. We are deepening
our friendship with members of universities.

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.

● Japan Society for Graphic Science● Japan Society for Design Engineering● The Japan Society of Mechanical Engineers● The Institute of Electrical Engineers of Japan, etc.

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

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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 Business
Skills 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) 2024 Artner Co., Ltd. All Rights Reserved

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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) 2024 Artner Co., Ltd. All Rights Reserved

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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 andprovidingEndorsed Task Force on Climaterelated Financial Disclosures(TCFD) recommendations■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 LGBTQ initiatives

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

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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

22.4

12.4

12.7

12.4

12.5

12.9

FY2019FY2020

FY2021

FY2022

FY2023

26.0
15.1

10
0

FY2018FY2024
Unit: yen

450
400
350
300
250
200
150
100
50
0

Earnings per share

Net assets per share

380.96401.97337.14184.8145.26
FY2018219.5950.91
FY2019256.7757.73
FY2020293.9359.16
FY2021

68.59
FY202284.24

FY202398.99

FY2024*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) 2024 Artner Co., Ltd. All Rights Reserved

61

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Reference

Net Assets / Equity Ratio

Total assets

Unit: million yen / ％Equity ratio

4,500

69.9
71.1

71.5

71.8

70.5

4,000

70.4

80.0

71.4
70.0

3,500

60.0

3,000

50.0

2,500
4,047

2,000

4,271

3,582

1,000

30.0

3,123

1,500

40.0

2,728
1,963

2,333

20.0
10.0

500
0

0.0
FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024

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Reference

Engineer Breakdown by Group / Gross Margin
Engineer Breakdown
100.0
80.0

17.0

60.0
40.0

83.0

20.0
0.0

FY2018

■HV

■WV

■PV

Unit: ％

16.3

15.7

16.4

15.9

15.0

15.9

70.1

71.8

71.1

72.2

73.3

71.9

13.7

12.5

12.5

11.9

11.7

12.1

FY2019FY2020

FY2021

FY2022

FY2023

FY2024Gross Margin (engineer dispatching)
HV

WV

PV

ALL

40.0
38.0
36.0
34.0
32.0
30.0

36.1
35.4
32.1
FY2018

37.3

37.4

36.3
36.0

36.3
36.1

38.5
38.1
33.9

32.8

32.2

FY2019FY2020

Unit: ％

39.4
35.1
35.1
34.6
32.9
31.8
FY202135.0

FY2022

33.3
32.9
30.8

FY2023

35.0
34.9

31.8

FY2024

Average Unit Price of Engineers (by group)■HV…approximately 5,000 yen ■WV … approximately 4,000 yen ■PV… approximately 3,000 yen
Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

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Reference

Quarterly (accounting period) Financial Results
Net sales■FY2023 ■FY2024

Unit: million yen

3,000
2,512 2,368

2,290

2,232

2,547

2,350 2,556

356

312
242 284

250

260

200
150
100

500

50

0

0

Q1

Q2

Ordinary profit

Q3■FY2023 ■FY2024

Q4

Unit: million yen

479

500
400

404

378

400
300

1,000

450

450
350

1,500

Unit: million yen

477

500

2,493

2,500
2,000

Operating profit ■FY2023 ■FY2024

356
312

300

293
250

250

261

300

150

100

Q4

Unit: million yen

333
284

263

241 231

216

202
173

200
150

Q3

■FY2023 ■FY2024

250

200
100

Q2

Profit
350

403

379

350

Q1

50

50
0

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

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Reference

Quarterly (accounting period) Financial Results, Numerical Data
FY2024Q1 (Feb. to Apr.)

Q2 (May to Jul. )Q3 (Aug. to Oct.)

Q4 (Nov. to Jan.)

Percent
Result -age
YOY

Percent
Result -age
YOY

Percent
Result -age
YOY

Percent
Result -age
YOY(million
yen)

(%)

(%)

*(1)
(%)

(million
yen)

(%)

(%)

*(1)
(%)

(million
yen)

(%)

(%)

*(1)
(%)

(million
yen)

(%)

(%)

Full-year

Percent
-age
YOY

*(1)

Result(%)(million
yen)

(%)

(%)

Net sales

2,493

100.0

11.7

24.7

2,512

100.0

9.7

24.9

2,547

100.0

7.5

25.2

2,556

100.0

8.8

25.3

10,110100.0

Cost of sales

1,528

61.3

10.2

23.3

1,587

63.2

5.6

24.2

1,755

68.9

5.4

26.7

1,699

66.5

5.5

25.9

6,571

65.0

6.5

Gross profit

965

38.7

14.2

27.3

925

36.8

17.6

26.2

791

31.1

12.7

22.4

856

33.5

15.9

24.2

3,539

35.0

15.1

SG&A expenses

487

19.5

4.3

24.2

521

20.8

10.0

25.9

507

19.9

10.2

25.2

500

19.6

4.6

24.8

2,016

19.9

7.3

Operating profit

477

19.2

26.4

31.4

404

16.1

29.2

26.5

284

11.2

17.4

18.7

356

13.9

36.6

23.4

1,522

15.1

27.5

Ordinary profit

479

19.2

26.4

31.3

403

16.1

29.1

26.3

293

11.5

17.2

19.1

356

13.9

36.6

23.3

1,532

15.2

27.4

Profit

333

13.4

26.5

31.7

284

11.3

31.5

27.1

202

8.0

16.9

19.3

231

9.0

(4.4)

22.0

1,051

10.4

17.5

9.4

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

FY2023Q1 (Feb. to Apr.)

Q2 (May to Jul.)

Q3 (Aug. to Oct.)

Q4 (Nov. to Jan.)

Percent
Result -age
YOY

Percent
Result -age
YOY

Percent
Result -age
YOY

Percent
Result -age
YOY

*(2)

*(2)

Percent
-age
YOY

*(2)

Result(million
yen)

(%)

(%)

(%)

(million
yen)

(%)

(%)

25.6

2,350

100.0

11.6

25.4

9,242

100.0

14.1

27.0

1,611

68.6

8.8

26.1

6,168

66.7

16.3

4.5

22.8

739

31.4

18.1

24.0

3,073

33.3

9.8

19.4

10.9

24.5

478

20.3

8.8

25.4

1,879

20.3

5.0

242

10.2

(5.9)

20.3

260

11.1

40.1

21.9

1,194

12.9

18.2

26.0

250

10.6

(4.1)

20.8

261

11.1

36.7

21.7

1,203

13.0

16.5

24.2

173

7.3

(4.1)

19.4

241

10.3

89.3

27.0

895

9.7

22.8

(million
yen)

(%)

(%)

(%)

(million
yen)

(%)

(%)

(%)

Net sales

2,232

100.0

11.4

24.2

2,290

100.0

15.9

Cost of sales

1,387

62.1

15.9

22.5

1,503

65.6

17.3

Gross profit

845

37.9

4.8

27.5

787

34.4

SG&A expenses

467

20.9

(2.8)

24.9

474

Operating profit

378

16.9

16.0

31.7

Ordinary profit

379

17.0

15.0

Profit

263

11.8

15.1

*(2)

Full-year(million
yen)

(%)

(%)

(%)

24.8

2,368

100.0

17.5

24.4

1,666

70.3

24.0

13.1

25.6

702

29.7

20.7

4.2

25.2

460

312

13.7

30.0

26.2

31.5

312

13.7

24.6

29.4

216

9.4

13.1

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

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

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5

Reference

Number of Engineers

Previous
FY termend
engineer
count

Newly
graduatedengineers

Number ofcareerengineers(incl. nonrecent andrecentgraduates)

Turnoverrate*

Term-end
engineercount

Changefrom thepreviousyear

Changefrom theprevious
year

(%)

(%)

(people)(people)(people)(people)(people)FY2019

716

130

26

8.9

785

69

9.6

FY2020

785

156

32

7.3

901

116

14.8

FY2021

901

177

29

11.7

971

70

7.8

FY2022

971

204

35

11.3

1,073

102

10.5

FY2023

1,073

169

50

9.6

1,157

84

7.8

FY2024

1,157

133

58

10.9

1,192

35

3.0

100

Decreased
YoY

FY2025 (forecast)

1,192

170

*Calculated based on operative regular employees:(Previous FY term-end engineer count + new graduate hire count + career engineer count) × (1 － turnover rate) ≠ term-end engineer count

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

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5

Reference

Data by Owner Category (as of July 31, 2024)
Share Distribution by Owner
Category

Financial institutions
4.87

Financial instruments
business operators
4.31
Treasuryshares0.02

Foreigncorporations, etc.
11.25

Shareholder Distribution by
Number of Shares Held

Unit: %

10,0005,000
and above and above
0.44
0.42

50,000and above
0.07

1,000
and above
11.61

Unit: %

100,000
and above
0.07
500,000
and above
0.01

500
and above
5.12
Under 100
37.53

Other
corporations
26.36

Individuals
and other
53.19

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

100
and above
62.20

Under 100

100
and above500
and above

1,000
and above

5,000
and above

10,000and above

50,000and above

100,000
and above

500,000
and above

Treasury shares
Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

67

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5

ReferenceTerm-end Shareholder Numbers
Unit: people

16,00015,051

15,00014,000
Apr. 2022
Secondary offering

13,00012,00013,044
11,595

11,000
9,723

10,0009,000

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

8,000
7,000
6,000
5,000

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

3,799
3,474 3,373 3,527 3,630 3,521 3,662

4,000
3,000
2,000

4,381

2,005

1,000
0

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

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Reference

Stock Price Changes (January 4, 2022 – March 22, 2024)
Mar. 14, 2024
Announcement offinancial results for
FY2024

2,700
2,600
2,500
2,400

Dec. 8, 2023
Announcement offinancial results forQ1 FY2024

2,300
2,200
2,100
2,000

Jun.8, 2023
Announcement offinancial results for
FY2024

1,900
1,800
1,700

Jul. 24, 2023
Year high1,936 yen

1,600
1,500
1,400
1,300
1,200
1,100

Apr. 2022 Secondaryoffering
Our public offering
price was 824 yen.

Mar. 14, 2023
Announcement offinancial results for
FY2023

Sept. 8, 2024
Announcement offinancial results for
FY2024

1,000
900
800
Jan. Feb. Mar. Apr. MayJun.Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.

May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb.

Mar.

Copyright(C) 2024 Artner Co., Ltd. All Rights Reserved

69

Lastly, here are the changes in our stock price.
This graph shows the changes from January 4, 2022, to March 22, 2024.
In April 2022, we held a secondary offering at a price of 824 yen per share.
On March 14, 2024, we announced our financial results for FY2024.
Our stock price reached a yearly high of 2,631 yen on March 7, 2024.
Our stock price has roughly tripled since the secondary offering in April 2022.

69

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) 2024 Artner Co., Ltd. All Rights Reserved

70

Artner has achieved sales growth and profit growth for ten consecutive periods so far.
Since our company’s fiscal year ends on January 31, we are already two months into the
new fiscal year (FY2025) that began on February 1.
The current market environment is extremely favorable for our business, including in termsof the unit price, which some have asked about.
In light of these factors, we believe that we can expect strong growth in sales and profit toachieve our 11th consecutive year of sales and profit growth.
Please continue to expect more from Artner.

70