Meitec : Summary (1.99MB)

Results for the 1st Quarter of the Fiscal Year Ending March 31, 2023

July 28, 2022

MEITEC CORPORATION

President and CEO, COO

MEITEC Group CEO

Hideyo Kokubun

Disclaimer

Earnings forecasts and other forward-looking statements in this release are based on data currently available to management and certain assumptions that management believes are reasonable.

Actual results may therefore differ materially from these statements for various reasons. Some important factors that might have an effect on business performance pertain to Business Risks stated in the Company's annual securities report and other information already released, but factors influencing business performance are not limited to those released.

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Results for the 1st Quarter of the Fiscal Year Ending March 31, 2023 (Group Consolidated)

Net sales rose 13.6% year on year Number of engineers assigned to clients and utilization ratio both increased. Operating profit rose 45.9% Increase in net sales absorbed increases in costs such as labor expenses and SG&A expenses.

		1Q ended June.	1Q ended June.	YoY		Initial Forecast for
			2Q, announced on
(Fractions of one million yen	30, 2021	30, 2022	Amount	Change	Change
May 2022
	are rounded down)
Net sales	25,196	28,632	3,436	13.6%	57,300	ᵓᵎᵌᵎ
Cost of sales	18,835	20,896	2,060	10.9%	42,000
	Cost of sales to Net sales	74.8%	73.0%	(1.8%)
SG&A Expenses	3,807	4,010	203	5.3%	8,500
Operating profit	2,552	3,725	1,172	45.9%	6,800	ᵓᵒᵌᵖ
	Operating profit margins	10.1%	13.0%	2.9%		11.9%
Ordinary profit	2,581	3,741	1,159	44.9%	6,800	ᵓᵓᵌᵎ
Extraordinary income & loss	0	0	―
Profit before income taxes	2,581	3,740	1,159	44.9%
Profit attributable to owners of parent	1,606	2,370	763	47.5%	4,500	ᵓᵐᵌᵕ
	Profit margins	6.4%	8.3%	1.9%

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Results for the 1st Quarter of the Fiscal Year Ending March 31, 2023 (Meitec)

	Net sales rose 10.6% year on year	Orders received strengthened on proposal sales while number
	of engineers assigned to clients and utilization ratio both increased.
	Operating profit rose 33.4% Increase in net sales absorbed increases in costs such as labor
	expenses and SG&A expenses.
		1Q ended June.	1Q ended June.		YoY		Initial Forecast for
				2Q, announced on
(Fractions of one million yen are	30, 2021	30, 2022		Amount	Change	Change
	May 2022
	rounded down)
Net sales	18,270	20,199	1,929	10.6%	40,000	ᵓᵎᵌᵓ
Operating profit	2,230	2,974	744	33.4%	5,300	ᵓᵔᵌᵏ
	Operating profit margins	12.2%	14.7%	2.5%		13.3%
Ordinary profit	2,803	3,864	1,061	37.8%	6,200	ᵔᵐᵌᵑ
Profit	1,938	2,732	793	40.9%	4,300	ᵔᵑᵌᵓ
Utilization ratio (Company-wide)	88.9%	93.5%	4.6%		94.2%
Working HoursẌh/dayẍ	8.43	8.35	(0.08)	(0.9%)	8.36
Number of Engineers	7,655	7,868	213	2.8%

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Results for the 1st Quarter of the Fiscal Year Ending March 31, 2023 (Meitec Fielders)

Net sales rose 22.9% year on year Number of engineers assigned to clients increased dramatically and utilization ratio also increased.

	Operating profit rose 235.3% Increase in net sales absorbed attendant increases in costs such as labor expenses
	and SG&A expenses.
		1Q ended June.	1Q ended June.	YoY	ή	Initial Forecast for
			2Q, announced on
(Fractions of one million yen are	30, 2021	30, 2022	Amount	Change	Change
May 2022
	rounded down)
Net sales	5,881	7,228	1,347	22.9%	14,600	ᵒᵗᵌᵓ
Operating profit	163	547	384	235.3%	950	ᵓᵕᵌᵔ
	Operating profit margins	2.8%	7.6%	4.8%		6.5%
Ordinary profit	163	547	384	235.3%	950	ᵓᵕᵌᵔ
Profit	111	376	265	238.5%	650	ᵓᵕᵌᵖ
Utilization ratio (Company-wide)		80.4%	87.5%	7.1%		90.2%
Working HoursẌh/dayẍ		8.39	8.26	(0.13)	(1.5%)	8.34
Number of Engineers		3,705	4,218	513	13.8%

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Results for the 1st Quarter of the Fiscal Year Ending March 31, 2023 (Group Overview)

Both sales and profit increased YoY due to a rise in the number of job placements in the Recruiting & Placement Business for Engineers.

Engineering Solutions Business

Recruiting & Placement Business for Engineers

(Fractions of one million	Meitec	Meitec	Meitec	Meitec	Meitec
Fielders	Cast	EX	Next
yen are rounded down)
Net sales	20,199	7,228	815	83	442
	YoY	1,929	1,347	70	19	62
	Amount
	Change	10.6%	22.9%	9.5%	31.1%	16.4%
Operating profit	2,974	547	60	(2)	157
	YoY	744	384	(1)	(5)	37
	Amount
	Change	33.4%	235.3%	(2.3%)		31.2%
Ordinary profit	3,864	547	60	(2)	157
Profit	2,732	376	41	(2)	108

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Number of Engineers (Group Consolidated)

The number of engineers as of June 30, 2022 was 12,086, an increase of 726 engineers, or 6.4%, compared to June 30, 2021.

• ᵍᵮᶃᶐᶑᶍᶌὸ

Lehman	Earth-	Previous Mid-term	Mid-term
Management Plan	Management Plan
shock	quake

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Number of Engineers (Meitec)

The number of engineers as of June 30, 2022 was 7,868, an increase of 213 engineers, or 2.8%, compared to June 30, 2021.

• ᵍᵮᶃᶐᶑᶍᶌὸ

Hiring of new

graduates

Achieving both mid-career hire and

reduction of turnover ratio at same time

Lehman	Earth-	Previous Mid-term	Mid-term
shock	quake	Management Plan	Management Plan

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Number of Engineers (Meitec Fielders)

The number of engineers as of June 30, 2022 was 4,218, an increase of 513 engineers, or 13.8%, compared to June 30, 2021.

• ᵍᵮᶃᶐᶑᶍᶌὸ

Hiring of new

graduates

Lehman
shock	Achieving both mid-career hire and
Earth-	reduction of turnover ratio at same time
quake
	Previous Mid-term	Mid-term
	Management Plan	Management Plan

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Hiring Target for the Fiscal Year Ending March 31, 2023 ᵰᶃᵋᶎᶍᶑᶒᶃᶂ

Mid career (FY 2023/3)

• The need for work-ready engineers is higher than before the COVID-19 pandemic, and the hiring environment continues to be competitive
  Expanding recruitment channels and actively communicating the "lifetime professional engineer" career style and our approach to career advancement, aiming to secure the number of hires
  While maintaining hiring standards, we are promoting active recruitment with an eye on medium- to long-term growth and development

New Graduates (Joined April 2023)

• Amidst the ongoing sellers' market in recent years, the recruitment activities of companies are accelerating and recruitment competition is intensifying
  Through internships, etc., attract students with "career styles centered on the occupation" as a lifelong professional engineer
  While placing the highest priority on securing the safety of students, continue recruitment activities that emphasize the importance of a student's inclination (a desire to grow, etc.)

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ίpersonὸ		Fiscal Year Ending March 31, 2023		Fiscal Year
			Ending March 31, 2024
	New Graduates	Mid-career	Total		New Graduates
	April 2022		April 2023
	(Actual)	Target	Comparison to	Target	Comparison to	Target	Comparison to
	Previous Year	Previous Year	Previous Year
Meitec	474	280	40	754	52	500		26
Meitec Fielders	411	800	(200)	1,211	(91)	450		39
Total	885	1,080	(160)	1,965	(39)	950		65

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