TechnoPro : FY2021 Full Year Financial Results Slide Presentaion

TechnoPro Group Financial Results for Fiscal Year Ended June 2021

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

August 10, 2021

Copyright © TechnoPro Holdings, Inc. All rights reserved.

Contents

		Page
I	: FY2021 Q4 & Full-Year Financial Overview	2
II	: KPI Analysis	8
	i ： Number of Engineers & Utilization Ratio	8
ii ： Unit Sales Price	13
III	： Overseas Subsidiaries	14
IV	Shareholder Return	15
V	： FY2022 Guidance	16
VI	： Appendix	19
VII	： Data References	22

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 at M&A transactions, 2) impairment loss, 3) changes in fair value amount and early exercise of put option liabilities, and 4) changes in fair value amount of earn-our liabilities

Copyright © TechnoPro Holdings, Inc. All rights reserved.	1

FY2021 Q4 & Full-Year Financial Overview

• Full-yearFY21.6 revenue was 161.3 billion yen, up 1.8 % year-on-year; operating profit was 19.46 billion yen(including 1.78 billion yenof government subsidy for continuous employment in Japan), up 23.4% year-on-year; core operating profit was 17.63 billion yen, up 8.4% year-on-year; net profit was 13.24 billion yen, up 22.4% year-on-year
• Full-yearFY21.6 gross profit margin decreased 0.8 ptsyear-on-year, mainly due to 1) a decline of unit sales price (0.2 pts) affected by a decrease in working hours, 2) an increase of provision for paid leave (0.2 pts), and 3) an increase in employer- contribution for the defined contribution pension plan (0.3 pts), while SG&A expenses ratio on revenue improved 1.4 ptsyear-on-year driven by continued cost-saving efforts, thereby core operating profit margin continues to expand 0.7 ptsyear- on-year

(yen in millions, except per share amounts)

		Q4 (three-month period)					Full-Year
	FY20.6	FY21.6				FY20.6	FY21.6	FY21.6
	(Results)	(Results)	YOY		(Results)	(Guidance)	(Results)	YOY		vs. Guidance
Revenue	38,916	41,135	+2,219		+5.7%	158,407	159,000	161,316	+2,909		+1.8%	+2,316	＋1.5%
Gross profit	9,273	10,840	+1,566		+16.9%	40,226	―	39,727	(499)		(1.2%)	―	―
GP margin	23.8%	26.4%	+2.5 pts			25.4%		24.6%	(0.8 pts)
SG&A expenses	5,856	6,387	+530		+9.1%	23,960	―	22,087	(1,872)		(7.8%)	―	―
Ratio on revenue	15.0%	15.5%	+0.5 pts			15.1%		13.7%	(1.4 pts)
Core operating profit	3,416	4,452	+1,035		+30.3%	16,265	―	17,639	+1,373		+8.4%	―	―
Core OP margin	8.8%	10.8%	+2.0 pts			10.3%		10.9%	+0.7 pts
Other income	290	177	(112)		―	649	―	2,162	+1,512		―	―	―
Other expenses	1,005	48	(956)		―	1,143	―	340	(802)		―	―	―
Operating profit	2,701	4,581	+1,879		+69.6%	15,772	18,000	19,461	+3,688		+23.4%	+1,461	＋8.1%
OP margin	6.9%	11.1%	+4.2 pts			10.0%	11.3%	12.1%	+2.1 pts			+0.7 pts
Profit before income taxes	2,754	4,570	+1,815		+65.9%	15,843	18,000	19,472	+3,629		+22.9%	+1,472	＋8.2%
Net profit	1,845	2,996	+1,150		+62.4%	10,825	12,300	13,245	+2,420		+22.4%	+945	＋7.7%
Net profit margin	4.7%	7.3%	+2.5 pts			6.8%	7.7%	8.2%	+1.4 pts			+0.5 pts
Earnings per share (yen)*	51.39	83.44	+32.05		+62.4%	299.97	342.54	368.88	+68.91		＋23.0%	+26.34	＋7.7%
Dividend per share (yen)*	―	―	―		―	150.00	172.00	185.00	+35.00		＋23.3%	+13.00	＋7.6%

* Per share amounts were calculated by using the number of shares before the three-for-onestock splitwhich was in effect on July 1, 2021

Copyright © TechnoPro Holdings, Inc. All rights reserved.	2

Reference: Quarterly Performance

Revenue																			(yen in billions)
60.0		38.8	39.1	40.1	40.2	40.4	40.7	38.9	41.1			158.4		161.3	200.0
40.0										100.0		FY20.6: Results
20.0
																				FY21.6: Results
0.0																			0.0
	FY20.6	FY21.6	FY20.6	FY21.6		FY20.6	FY21.6	FY20.6	FY21.6			FY20.6		FY21.6
		Q1	Q1	Q2	Q2		Q3	Q3	Q4	Q4	Full-yearFull-year
YOY	+0.8%	+0.3％		+0.7%	+5.7％			+1.8％
Progress on full-year %	24.6%	24.3%	25.3%	25.0%		25.5%	25.2%	24.6%	25.5%		100.0％		100.0％
Ave. no. of engineers	19,523	20,795	19,866	20,287		20,165	19,986	21,370	20,229		20,231			20,324
Ave. utilization ratio	95.5%	92.7%	95.9%	94.8%		95.4%	96.2%	89.8%	94.7%		94.0%			94.6%
Ave. monthly unit sales	626	620	635	637		638	640	620	639			630			634
price (thousand yen)*
Working days*	56.5	56.2	58.1	58.6		55.8	56.5	56.7	57.7			227.1			229.0
Working hours per day*	8.56	8.44	8.56	8.47		8.56	8.51	8.39	8.47			8.52			8.47
						* Figures of two major subsidiaries in Japan (TechnoPro, Inc. & TechnoPro Construction, Inc.)

Operating	6.0				5.3		5.1				19.4
	4.3	4.3	4.8		4.5	15.7	20.0
Profit	4.0	3.8
						2.7
									10.0
	2.0
	0.0										0.0
		FY20.6	FY21.6	FY20.6	FY21.6	FY20.6	FY21.6	FY20.6	FY21.6	FY20.6	FY21.6
		Q1	Q1	Q2	Q2	Q3	Q3	Q4	Q4	Full-year	Full-year

FY20.6: Results

FY21.6: Results

YOY	+12.2%	+22.8％	+7.2%	+69.6％	+23.4％
Progress on full-year %	24.6%	22.4%	27.5%	27.4%	30.7%	26.7%	17.1%	23.5%	100.0％	100.0％
OP margin	10.0%	11.1%	10.8%	13.2%	12.0%	12.8%	6.9%	11.1%	10.0％	12.1%

Copyright © TechnoPro Holdings, Inc. All rights reserved.	3

Reference: Quarterly Performance (continued)

Gross Profit

39.7

(yen in billions)

15.0

10.5

9.6

10.8

10.3

10.8

40.2

50.0

9.5

8.8

9.2

FY20.6: Results

10.0

25.0

5.0

0.0

0.0

FY21.6: Results

FY20.6

FY21.6

FY20.6

FY21.6

FY20.6

FY21.6

FY20.6

FY21.6

FY20.6

FY21.6

Q1

Q1

Q2

Q2

Q3

Q3

Q4

Q4

Full-yearFull-year

YOY

(6.9％)

(8.8％)

(4.4％)

+16.9％

(1.2％)

GP margin

24.5％

22.7％

26.3％

23.9％

26.8％

25.4％

23.8％

26.4％

25.4％

24.6％

SG&A

9.0

23.9

30.0

6.1

6.1

6.3

22.0

5.8

5.0

5.1

5.4

5.8

FY20.6: Results

6.0

15.0

3.0

0.0

0.0

FY21.6: Results

FY20.6

FY21.6

FY20.6

FY21.6

FY20.6

FY21.6

FY20.6

FY21.6

FY20.6

FY21.6

Q1

Q1

Q2

Q2

Q3

Q3

Q4

Q4

Full-yearFull-year

YOY

(13.8％)

(15.5％)

(10.5％)

+9.1％

(7.8％)

Ratio on revenue

15.0％

12.9％

15.3％

12.9％

15.1％

13.4％

15.0％

15.5％

15.1％

13.7％

Core

6.0

4.4

4.4

4.7

4.8

4.4

16.2

17.6

20.0

Operating

3.6

3.8

3.4

FY20.6: Results

4.0

Profit

10.0

2.0

0.0

0.0

FY21.6: Results

FY20.6

FY21.6

FY20.6

FY21.6

FY20.6

FY21.6

FY20.6

FY21.6

FY20.6

FY21.6

Q1

Q1

Q2

Q2

Q3

Q3

Q4

Q4

Full-yearFull-year

YOY

+4.2％

+0.6％

+3.3％

+30.3％

+8.4％

Core OP margin

9.5％

9.8％

11.0％

11.0％

11.7％

12.0％

8.8％

10.8％

10.3％

10.9％

Copyright © TechnoPro Holdings, Inc. All rights reserved.	4