Meitec : Summary (699KB)

Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2023

January 31, 2023

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 3rd Quarter of the Fiscal Year Ending March 31, 2023 (Group Consolidated)

• Net sales rose 12.4% ⇒ Achieved an increase in the number of engineers assigned to clients due to growth in the number of engineers and improvement of utilization ratio
• Operating profit rose 29.5% ⇒ Due to the increase in net sales absorbing the increase in labor expenses and other costs associated with growth in the number of engineers, and the increase in SG&A expenses

(Fractions of one million yen	3Q ended Dec. 31,		3Q ended Dec. 31,	YoY	％	Past Forecast	％
2021		2022	Amount	Change	Change
are rounded down)

Net sales	78,936	88,696	＋	＋	12.4%	119,500	74.2%
		9,760
Cost of sales	58,079	64,180	＋	＋	10.5%	86,700
		6,101
	Cost of sales to Net sales	73.6%	72.4%	(1.2%)
SG&A Expenses	11,294	12,130	＋835	＋7.4%	17,000
Operating profit	9,562	12,385	＋	＋	29.5%	15,800	78.4%
		2,822
	Operating profit margins	12.1%	14.0%	1.8%			13.2%
			＋
Ordinary profit	9,667	12,447	＋	＋	28.8%	15,900	78.3%
		2,780
Extraordinary income & loss	(4)	0	＋
		3
Profit before income taxes	9,662	12,447	＋	＋	28.8%
		2,784
		6,492	8,490	＋	＋	30.8%	10,900	77.9%
Profit attributable to owners of parent	1,998
	Profit margins	8.2%	9.6%	＋1.3%

3

Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2023 (Meitec)

• Year on year, net sales rose 9.8% while operating profit rose 26.3% and the number of engineers increased 3.4%
• Utilization ratio improved 3.6 points year on year ⇒ We proceeded with the assignment of engineering staff in response to orders.

		3Q ended Dec.	3Q ended Dec.	YoY	％	Past Forecast	％
(Fractions of one million yen are	31, 2021	31, 2022	Amount	Change	Change
	rounded down)
Net sales	56,880	62,443	＋5,563	＋9.8%	83,500	74.8%
Operating profit	7,809	9,863	＋2,054	＋26.3%	12,700	77.7%
	Operating profit margins	13.7%	15.8%	＋2.1%		15.2%
Ordinary profit	8,388	10,764	＋2,376	＋28.3%	13,600	79.1%
Profit	5,793	7,608	＋1,814	＋31.3%	9,600	79.3%
Utilization ratio (Company-wide)	93.0%	96.6%	＋3.6%		96.5%
Working Hours〈h/day〉	8.37	8.36	(0.01)	(0.1%)	8.41
Number of Engineers	7,511	7,764	＋253	＋3.4%

4

Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2023 (Meitec Fielders)

• Year on year, net sales rose 20.0% while operating profit rose 45.2% and the number of engineers increased 13.4%
• Utilization ratio improved 5.1 points year on year ⇒ We proceeded with the assignment of engineering staff in response to orders.

		3Q ended Dec.	3Q ended Dec.	YoY	％	Past Forecast	％
(Fractions of one million yen are	31, 2021	31, 2022	Amount	Change	Change
	rounded down)
Net sales	18,874	22,642	＋3,768	＋20.0%	31,000	73.0%
Operating profit	1,370	1,990	＋619	＋45.2%	2,400	82.9%
	Operating profit margins	7.3%	8.8%	＋			7.7%
		1.5%
Ordinary profit	1,371	1,990	＋618	＋45.1%	2,400	82.9%
Profit	941	1,369	＋427	＋45.3%	1,650	83.0%
Utilization ratio (Company-wide)	87.0%	92.1%	5.1%		93.1%
		＋
Working Hours〈h/day〉	8.35	8.25	(0.10)	(1.2%)	8.34
Number of Engineers	3,749	4,250	＋	501	＋
			13.4%

5

Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2023 (Group Overview)

• Both sales and profit increased YoY for Meitec Next. ⇒ An increase in the number of job placements.

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	62,443	22,642	2,476	249	1,274
	YoY	＋	5,563	＋		＋	＋	12	＋
	Amount			3,768	246		157
	％	＋	＋	20.0%	＋	＋		＋
	Change		9.8%		11.0%	5.3%	14.0%
Operating profit		9,863		1,990	161	(1)	416
	YoY	＋	2,054		＋	619	＋	(0)	＋
	Amount				21	77
	％	＋		＋	45.2%	＋		－	＋
	Change	26.3%		15.1%			23.0%
Ordinary profit	10,764		1,990	161	(1)	416
Profit		7,608		1,369	111	(1)	288

6

Number of Engineers (Group Consolidated)

• The number of engineers as of December 31, 2022 was 12,014, an increase of 754 engineers, or 6.7%, compared to December 31, 2021.

（名/Person）

MEITEC

MEITEC FIELDERS

その他/Others

10,000

Lehman

Earth-

Previous Mid-term

Mid-term Plan

shock

quake

Plan

0

'07/4

'08/4

'09/4

'10/4

'11/4

'12/4

'13/4

'14/4

'15/4

'16/4

'17/4

'18/4

'19/4

'20/4

'21/4

'22/4

7

Number of Engineers (Meitec)

• The number of engineers as of December 31, 2022 was 7,764, an increase of 253 engineers, or 3.4%, compared to December 31, 2021.

（名/Person）

8,000

Hiring of new

graduates

7,500

7,000

6,500

6,000

Achieving both mid-career hire and reduction

of turnover ratio at same time

5,500

Lehman

Earth-

Previous Mid-term

Mid-term Plan

shock

quake

Plan

5,000

'07/4

'08/4

'09/4

'10/4

'11/4

'12/4

'13/4

'14/4

'15/4

'16/4

'17/4

'18/4

'19/4

'20/4

'21/4

'22/4

8

Number of Engineers (Meitec Fielders)

• The number of engineers as of December 31, 2022 was 4,250, an increase of 501 engineers, or 13.4%,

compared to December 31, 2021.

（名/Person）

Hiring of new

graduates

Lehman

shock

Earthquake

Achieving both mid-career hire and

reduction of turnover ratio at same time

Previous Mid-term	Mid-term Plan
Plan

Hiring Target for the Fiscal Year Ending March 31, 2023 Re-posted

Mid-career hires (FY 2023/3)

• The need for engineers continues to intensify and overheating , making the hiring environment extremely competitive

• While maintaining its hiring standards, aim to achieve the target number of recruits by expanding recruiting channels
  ⇒Continuing to disseminate the "lifetime professional engineer" career style and our approach to career advancement

New Graduates (Joining April 2023)

• Corporate appetite for hiring new graduates remains at high levels, and competition is intensifying more than last year

• We strived to create contact points with many students, while maintaining our hiring standards and taking measures to prevent infection, keeping in mind the increasingly diverse inclinations of students
• However, due to robust hiring demand from manufacturers throughout the country and student preference for local jobs is strengthening, we are struggling to secure the required number of hires

（person）

Meitec

Meitec Fielders

	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	〈Prospective Number	Comparison to
Initial Forecast	Initial Forecast	as of Oct. 2022〉	Initial Forecast
474	280	―	754	―	483	(17)
411	800	―	1,211	―	391	(59)

Total	885	1,080	―	1,965	―	874	(76)
Comparison to	＋121	＋303		＋424
previous year				10