TechnoPro Group Financial Results for the 3rd Quarter of FYE June 2022

TechnoPro Holdings, Inc. (code: 6028, TSE)

April 28, 2022

Contents

Page

I II

: FY2022 Q3 Financial Overview : KPI Analysis [Japan]

i： Number of Engineers & Utilization Ratio ii ： Unit Sales Price

29 9 13

  • III ： Robosoft Update

  • IV ： FY2022 Guidance

14 15

V

： Shareholder Return

17

  • VI ： Appendix

  • VII ： Data References

18 21

  • 1. Accounting figures are rounded down to the nearest unit unless otherwise stated; KPI figures exclude "Other Businesses in Japan" and "Overseas" segments

  • 2. "Net profit" refers to net profit attributable to owners of the parent company after deducting non-controlling interests

  • 3. "Core operating profit" is calculated by subtracting SG&A expenses from gross profit, excluding extraordinary items (ex. government subsidy, impairment loss) recognized in other income or other expenses

  • 4. "Operating profit before PPA asset amortization" is calculated by adding back following items to operating profit: 1) amortization of client related asset incurred by Purchase Price Allocation (PPA) at M&A transactions, 2) impairment loss, 3) changes in fair value amount and early exercise of Put Option (PO) liabilities, and 4) changes in fair value amount of Earn-Out (EO) liabilities

  • 5. Per share amounts were calculated by using the number of shares AFTER the three-for-one stock split which was in effect on July 1, 2021

FY2022 Q3 Financial Overview

  • • Year-to-date Q3 FY22.6 revenue was 131.7 billion yen, up 9.6% year-on-year; gross profit was 34.2 billion yen, up 18.7% year-on-year; core operating profit was 14.4 billion yen, up 9.6% year-on-year; operating profit was 16.5 billion yen, up 11.0% year-on-year; net income was 12.0 billion yen, up 17.8% year-on-year

  • • Year-to-date Q3 FY22.6 gross profit was up 18.7% year-on-year mainly due to 1) the mix of increased allocation and decreased standby of domestic engineers (up 5.4%), 2) expansion of project-type services (up 4.6%), and 3) new consolidation of Robosoft's earnings (up 4.3%), while gross profit margin improved 2.0 pts and core operating profit increased year-on-year

  • • Net income significantly improved by reviewing estimated effective tax rate due to Helius' PO liability reversal gain

(yen in millions, except per share amounts)

Q3 (Three-Months Period)

Nine-Months Ended

Full-Year

FY21.6 (Results)

FY22.6 (Results)

FY21.6 (Results)

FY22.6 (Results)

FY21.6 (Results)

FY22.6 (Guidance)

YOY

Progress

YOY

YOY

Revenue

40,729

45,354

+4,624

+11.4%

120,181

131,712

75.7%

+11,531

+9.6%

161,316

174,000

+7.9%

Gross profit

GP margin

10,363 25.4%

12,402 27.3%

+2,039 +1.9pt

+19.7%

28,887 24.0%

34,283 26.0%

―

+5,396 +2.0pt

+18.7%

39,727 24.6%

―

―

SG&A expenses

Ratio on revenue

5,468 13.4%

6,988 15.4%

+1,519 +2.0pt

+27.8%

15,700 13.1%

19,837 15.1%

―

+4,136 +2.0 pts

+26.3%

22,087 13.7%

―

―

Core operating profit

Core OP margin

4,894

12.0%

5,414

11.9%

+519

(0.1 pts)

+10.6%

13,186

11.0%

14,446

11.0%

83.5%

+1,260

(0.0 pts)

+9.6%

17,639

10.9%

17,300

9.9%

(1.9%)

Other income Other expenses

469 165

112 82

(357) (83)

― ―

1,984 291

2,265 189

― ―

+280 (102)

― ―

2,162 340

― ―

― ―

Operating profit

OP margin

5,198 12.8%

5,444 12.0%

+245 (0.8 pts)

+4.7%

14,879 12.4%

16,522 12.5%

85.6%

+1,642 +0.2pt

+11.0%

19,461 12.1%

19,300 11.1%

(0.8%)

Profit before income taxes

5,257

5,547

+290

+5.5%

14,902

16,777

86.9%

+1,874

+12.6%

19,472

19,300

(0.9%)

Net profit

Net profit margin

3,626 8.9%

4,283 9.4%

+656 +0.5 pts

+18.1%

10,249 8.5%

12,077 9.2%

90.8%

+1,827 +0.6 pts

+17.8%

13,245 8.2%

13,300 7.6%

+0.4%

Earnings per share

33.66

39.76

+6.10

+18.1%

95.15

112.11

―

+16.96

+17.8%

122.96

123.46

＋0.4%

Dividend per share

―

―

―

―

16.67

20.00

―

+3.33

+20.0%

61.67

62.00

＋0.5%

Operating Profit Bridge

  • • Increase in recruitment and other costs and the dissipation of the government subsidy for continuous employment were sufficiently offset by the improvement of gross profit driven by the increased number of assigned engineers and the unit sales price hike, making year-to-date Q3 pro forma operating profit exceed previous year; (however, the increase of GP is expected to become smaller in Q4 since much larger number of new graduates compared to the previous year joined in April)

  • • Expenses recorded to date to implement Medium-Term Plan still remain at 55% against annual budget, but the full year guidance is based on assumption that all budgeted expenses will be spent by the end of this fiscal year

Strategic

YTD Q3 Results

+293, +0.2%

(yen in millions, ratio on revenue)

(953), (0.7%)

14,879 12.4%

15,172 11.5%

16,522 12.5%

(1,430)

FY21.6

OP Results

Dissipation of gov. subsidy

GP increase （excluding Robosoft）

Recruiting cost increaseOther cost increase

FY22.6

Pro Forma

Solution talent recruitingSolution talent training

Stock-basedRobosoftinvestment compensation

PO liability reversal gain

FY22.6

OP Guidance

Returning to NormalityExpenses to Implement

Medium-Term PlanOthers

Reference: Quarterly Performance

Revenue

60.0

40.0

20.0

0.0

FY21.6

Q1

FY22.6

Q1

FY21.6

Q2

FY22.6

Q2

FY21.6

Q3

FY22.6

Q3

FY21.6

Q4

YOY

Progress on full-year %

+6.2% 24.3%

+11.1%

+11.4%

―

―

―

25.0%

―

25.2%

―

25.5%

―

100.0％

―

Ave. no. of engineers

Ave. utilization ratio

20,795 92.7% 620

20,439 95.5% 639

20,287 94.8% 637

20,673 95.7% 660

19,986 96.2% 640

20,949 96.0％ 673

20,229 94.7% 639

[21,950] [93.0%]

20,324 94.6% 634

[21,000] [95.0%]

Ave. monthly unit sales price (thousand yen)*

[650]

[655]

Working days*

Working hours per day*

56.2 8.44

55.7 8.49

58.6 8.47

58.2 8.49

56.5 8.51

55.7 8.51

57.7 8.47

[56.6] [8.48]

229.0 8.47

[226.3] [8.49]

Operating Profit

8.0

7.1

6.0

4.0

2.0

0.0

FY22.6 Full-Year

YOY

(9.5%)

+34.0%

+4.7%

―

―

Progress on full-year %

22.4%

―

27.4%

―

26.7%

―

23.5%

―

100.0%

―

OP margin

11.1%

9.5%

13.2%

16.0%

12.8%

12.0%

11.1%

―

12.1%

―

(yen in billions)

200.0

100.0

FY21.6:（R実es績ult）s

0.0

FY22.6:（R実es績ult）s

† Figures in brackets indicate forecast at the time of publication

20.0

10.0

FY21.6:（R実es績ult）s

0.0

FY22.6:（R実es績ult）s

* Figures of two major subsidiaries in Japan (TechnoPro, Inc. & TechnoPro Construction, Inc.); Ave. monthly unit sales price includes all subsidiaries in Japan for FY22.6 (the same applies hereinafter)

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TechnoPro Holdings Inc. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 06:03:04 UTC.