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discrepancies between this and the original, the original Japanese document prevails. | |
Summary of the Consolidated Financial Statements (IFRS) | |
for the Fiscal Year Ended June 30, 2021 |
August 10, 2021 | ||||
Listed Company Name | TechnoPro Holdings, Inc. | Listed Stock Exchange: Tokyo | ||
TSE Code | 6028 | URL https://www.technoproholdings.com/en/ | ||
Representative | (Title) | President, Representative Director & CEO | (Name) Takeshi Yagi | |
In charge of inquiries | (Title) | Managing Director & CFO | (Name) Toshihiro Hagiwara TEL 03-6385-7998 |
Scheduled date of the general meeting of shareholders | September 29, 2021 |
Scheduled commencement date for dividend payment | September 30, 2021 |
Scheduled date of submission of securities report | September 29, 2021 |
Supplementary materials for financial results: | Yes |
Briefing session for financial results: | Yes (For institutional investors and analysts) |
(Amounts less than one million yen are omitted) | ||||||||||||||||
1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2021 (July 1, 2020 - June 30, 2021) | ||||||||||||||||
(1) Consolidated Operating Results | (% represents the change from the same period of the previous fiscal year) | |||||||||||||||
Net profit | ||||||||||||||||
Revenue | Core operating | Operating profit | Profit before income | Net profit | attributable to | |||||||||||
profit | taxes | owners of the | ||||||||||||||
parent company | ||||||||||||||||
Million | % | Million | % | Million | % | Million | % | Million | % | Million | % | |||||
yen | yen | yen | yen | yen | yen | |||||||||||
FY ended June 30, 2021 | 161,316 | 1.8 | 17,639 | 8.4 | 19,461 | 23.4 | 19,472 | 22.9 | 13,392 | 22.1 | 13,245 | 22.4 | ||||
FY ended June 30, 2020 | 158,407 | 9.9 | 16,265 | - | 15,772 | 14.8 | 15,843 | 15.4 | 10,966 | 16.7 | 10,825 | 11.8 | ||||
Comprehensive | Ratio of profit to | Ratio of profit | Ratio of | |||||
Basic earnings | Diluted earnings | equity attributable | before income | |||||
income for the | operating profit | |||||||
per share | per share | to the owners of the | taxes to total | |||||
period | to revenue | |||||||
parent company | assets | |||||||
Yen | Yen | % | % | % | ||||
FY ended June 30, 2021 | 14,533 | 41.5 | 122.96 | - | 25.1 | 17.2 | 12.1 | |
FY ended June 30, 2020 | 10,269 | 17.8 | 99.99 | - | 23.3 | 15.7 | 10.0 |
(Ref.) Equity in net income of affiliates: FY ended June 30, 2021: (- million); FY ended June 30, 2020: (¥4 million)
(Note) As core operating profit has only been disclosed since the fiscal year ended June 30, 2021, the percentage change from the previous fiscal year ended June 30, 2020 has been omitted. Core operating profit is the Group's own profit indicator, calculated by subtracting selling, general and administrative expenses from gross profit, which indicates excluding, from operating profit, the impact of extraordinary items (such as employment adjustment subsidies and impairment losses) recorded under other income and other expenses.
(Note) The Group conducted a three-for-one split of ordinary shares on July 1, 2021. "Basic earnings per share" is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
(2) Consolidated Financial Position
Equity attributable to | Percentage of equity | Equity attributable | |||
Total assets | Total equity | the owners of the | attributable to the | to the owners of the | |
owners of the parent | parent company per | ||||
parent company | |||||
company | share | ||||
Million yen | Million yen | Million yen | % | Yen | |
FY ended June 30, 2021 | 117,989 | 58,733 | 57,226 | 48.5 | 531.22 |
FY ended June 30, 2020 | 107,967 | 49,509 | 48,229 | 44.7 | 447.70 |
(Note) The Group conducted a three-for-one split of ordinary shares on July 1, 2021. "Equity attributable to the owners of the parent company per share" is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
(3) Consolidated Cash Flows
Net cash from operating | Net cash from (used in) | Net cash from (used in) | Cash and cash equivalents | |
activities | investing activities | financing activities | at end of period | |
Million yen | Million yen | Million yen | Million yen | |
FY ended June 30, 2021 | 22,081 | (1,374) | (11,114) | 32,524 |
FY ended June 30, 2020 | 18,059 | (1,498) | (14,927) | 22,797 |
2. Dividends
Annual dividends per share | Total | Dividend | Ratio of dividends | |||||||
End of | End of | End of | End of | payout ratio | to net assets | |||||
first | second | third | fiscal | Total | Dividends | (Consolidated) | (Consolidated) | |||
quarter | quarter | quarter | year | |||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |||
FY ended June 30, 2020 | - | 50.00 | - | 100.00 | 150.00 | 5,397 | 50.0 | 11.6 | ||
FY ended June 30, 2021 | - | 50.00 | - | 135.00 | 185.00 | 6,643 | 50.2 | 12.6 | ||
FY ending June 30, 2022 | - | 20.00 | - | 33.00 | 53.00 | 50.5 | ||||
(forecast) | ||||||||||
(Note) The Group conducted a three-for-one split of ordinary shares on July 1, 2021. Actual dividend amounts from before the stock split are stated for FY ended June 30, 2020 and FY ended June 30, 2021.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 - June 30, 2022)
(% represents the change from the same period of the previous year)
Core operating | Profit before income | Net profit attributable | Basic | ||||||||
Revenue | Operating profit | to owners of the | earnings | ||||||||
profit | taxes | ||||||||||
parent company | per share | ||||||||||
Second quarter | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen |
84,000 | 5.7 | 7,300 | (12.0) | 7,300 | (24.6) | 7,250 | (24.8) | 5,000 | (24.5) | 46.41 | |
(accumulated) | |||||||||||
Full year | 170,000 | 5.4 | 16,500 | (6.5) | 16,500 | (15.2) | 16,400 | (15.8) | 11,300 | (14.7) | 104.89 |
(Note) The Group conducted a three-for-one split of ordinary shares on July 1, 2021. "Basic earnings per share" shows figures after the stock split.
- Notes
- Changes to important subsidiaries during the period (changes to "Specified Subsidiaries" that involve changes made to scope of consolidation): None
- Changes to accounting policies and accounting estimates
- Changes to accounting policies as required by IFRS: None
- Changes to accounting policies other than i.: None
- Changes to accounting estimates: None
- Number of outstanding shares (ordinary shares)
i. Number of outstanding shares at the end | FY ended June | 108,421,164 | shares | FY ended June | 108,421,164 | shares |
of the period (including treasury shares) | 30, 2021 | 30, 2020 | ||||
ii. Number of treasury shares at the end of | FY ended | 695,109 | shares | FY ended June | 695,043 | shares |
the period | June 30, 2021 | 30, 2020 | ||||
iii. Average number of shares during the | FY ended June | 107,726,083 | shares | FY ended June | 108,264,815 | shares |
period | 30, 2021 | 30, 2020 |
(Note) The Group conducted a three-for-one split of ordinary shares on July 1, 2021. "Number of outstanding shares at the end of the period," "Number of treasury shares at the end of the period," and "Average number of shares during the period" are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
- This Summary of Financial Statements is not subject to audit by CPAs or an audit firm.
- Explanation regarding proper use of financial results forecasts, and other notes
(Cautionary note on forward-looking statements)
Forward-looking statements in this document about future performance are based on information currently available and certain assumptions that are considered reasonable. Due to unforeseen circumstances, actual results may differ from such estimates.
(Obtaining supplementary materials for financial results)
The Company plans to hold a briefing on business results for institutional investors and analysts on August 10, 2021. The Company plans to post supplementary and other materials for the briefing on the Company's website at the same time that the information is disclosed to the Tokyo Stock Exchange.
Contents
1. | Analysis of business performance and financial position | 2 | |
(1) | Summary of business performance | 2 | |
(2) | Summary of financial position | 5 | |
(3) | Cash flow conditions | 6 | |
(4) | Business performance forecasts | 6 | |
2. | Basic stance towards the selection of accounting standards | 6 | |
3. | Consolidated financial statements and notes | 7 | |
(1) | Consolidated Statement of Financial Position | 7 | |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income | 9 | |
(3) | Consolidated Statement of Changes in Equity | 11 | |
(4) | Consolidated Statement of Cash Flows | 12 | |
(5) | Notes to the consolidated financial results | 14 |
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1. Analysis of Business Performance and Financial Position
(1) Summary of business performance
During the consolidated fiscal year under review (July 1, 2020 to June 30, 2021), the global economy saw recovery in some regions as governments took aggressive fiscal and monetary measures against the spread of COVID-19. In China in particular, economic activity is quickly normalizing, driven by strong exports of electrical products and electronic components; nevertheless, the escalating conflict between China and the U.S. requires monitoring. In the U.S., the economy is on a recovery track due to the improvement in consumer spending and employment, backed by supplementary economic stimulus measures. In Japan, however, although the economy showed signs of recovery in the manufacturing sector, the outlook remains unclear; a second state of emergency was declared in January 2021 and a third in April 2021, and the concerns about the impact on future economic activities persist.
In this environment, the Group has taken a prudent approach to business operations based on timely and appropriate analysis from a multifaceted perspective that accommodates an increasingly uncertain economic climate, changes in customer demand, trends in the job market, and the shift toward new work styles (such as telecommuting and remote working). During the consolidated fiscal year under review, and despite the impact of a resurgence in COVID-19 infections, the period was characterized by robust customer demand, especially in segments on which the Group has been focusing: IT and DX-related business, construction management business, and chemical and biotechnology-related business, etc.
The main initiatives of the Group in the consolidated fiscal year under review are as follows:
Secure engineers
Since the fourth quarter of the previous consolidated fiscal year, when COVID-19 infections began to spread across Japan, the Group made protecting the employment of existing employees its top priority and has drastically reduced new hiring. Since the second quarter of the fiscal year under review, however, the Group has resumed mid-career hiring of high-value-added engineers in response to an improved utilization rate resulting from a shortage of engineers in specific technical fields. Despite the resumption of mid-career hiring, the downward trend in the number of engineers on payroll continued due to the time that was required to accumulate a recruitment population; as such, the number of engineers on payroll in Japan at the end of the third quarter of the consolidated fiscal year under review came to 19,949. Subsequently, however, the induction of 292 new graduate engineers in April 2021 and the resumption of mid-career hiring began to take effect, and the number of engineers on payroll in Japan as of the end of the fiscal year under review stood at 20,330. The Group will continue to focus on hiring engineers to meet the strong demand for IT and DX-related experts, and also continue its efforts to curb retirements to secure a sufficient number of engineers - the source of our growth.
Higher quality and diversification of services, higher value-added engineers
By acquiring partner certification from major IT vendors and forming alliances with the advanced technology partners, we promoted the diversification and improvement of the quality of the services we provide in technology areas where demand is expected to grow in the future. In addition to hiring highly-skilled engineers, we continued to work with major IT vendors and advanced companies to strengthen and develop the skills of existing engineers as a means for adding value to our services.
The following are examples of the Group's efforts to train engineers and diversify its service offerings via partner certification from major IT vendors:
・Certified as an "SAP PartnerEdge Silver Partner" by SAP Japan Co., Ltd., the Japanese subsidiary of one of Europe's largest software companies that provides ERP packages for enterprise solutions
・Certified as a "Consulting Partner" by Salesforce.com, a provider of cloud computing services centered on customer relationship management (CRM) solutions
・Certified as an implementation support partner for the world's standard project management software, Microsoft Project, and as a "Microsoft Partner (Gold Project and Portfolio Management/Gold Communications)" by Microsoft Japan K.K.
・Certified as an "AWS Partner Network (APN) Select Consulting Partner" by Amazon Web Services Japan
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K.K., provider of Amazon Web Services (AWS), the world's most widely adopted cloud platform
The following are examples of the Group's efforts to train engineers and improve the quality of services provided through alliances with advanced technology partners:
・Collaboration with i's FACTORY co., ltd. and ALBERT Inc. in their data scientist and data analyst training and staffing business
・Collaboration with CYBERGYM JAPAN Co., Ltd. in its cybersecurity expert development business
・Collaboration with Integration Technology Co., Ltd., which has strength in Model Based Development for the automotive industry
・Collaboration with LIGHTz Inc., which has strength in AI, and Aidemy, inc., which provides an AI learning support platform
In addition, the Group has advanced various initiatives such as establishing courses for cutting-edge technologies at Win School operated by PC Assist Co., Ltd., a consolidated subsidiary engaged in the technology training business in the technology field.
Shift to the IT sector
Irrespective of the impact of COVID-19, the IT sector is seeing stronger demand in comparison to other sectors, which is expected to increase in future. Currently, IT engineers account for over half of all the Group's engineers on payroll, and both their number and proportion they represent are increasing. The Group is actively investing resources into the IT Sector; in addition to new hires, it is increasing the number of engineers specialized in digital technologies (data science, cloud, IoT, security, 5G, etc.) and shifting engineer skills from hardware-related areas to digital (reskilling) or by having engineers learn multiple skills, as well as by recruitment of such engineers.
Promoting globalization
The Group has continued cooperating with the TechnoPro China Group and Helius Technologies Pte Ltd, which have offices in Asia, and Orion Managed Services Limited, which has offices in the United Kingdom, to provide technology support to Japanese multinational companies in the region. In September 2019, the Group established TPRI Technologies Private Limited in India to lay the foundations for global service development based in India.
Measures to prevent the spread of COVID-19
The Group has prioritized the health and safety of its employees throughout the COVID-19 pandemic. Specifically, it has promoted working from home and staggered commuting, set up systems to enable business discussions and meetings to be conducted via online video conferencing, distributed masks and disinfectant to all offices in Japan, changed hanko seal-based approvals to other methods, and continued with furlough procedures. In addition, the Group was named a Certified Health and Productivity Management Outstanding Organization (Large Enterprise Category) in March 2021 by the Ministry of Economy, Trade and Industry (METI) and Nippon Kenko Kaigi (health promotion organization) for the second consecutive year and is implementing measures to support the health of employees, even under changed working circumstances such as working from home. Through such efforts, the Group is working to strengthen systems that will enable it to conduct business even if the COVID-19 pandemic continues to expand in future.
Promotion of digital transformation
The Group has been proceeding with the development of a talent management system under the strategy "Move toward platforms utilizing information technologies," one of the four strategies of its Medium-Term Management Plan, "Sustainable Growth for a Bright Future" (July 1, 2017-July 30, 2022) (Note: This plan was ended on June 30, 2020, one year ahead of schedule as five-year numerical targets had largely been achieved within that time.) Many functions have already been developed and the Group is making progress in developing a system for the effective use of various types of internal data. The Group will accelerate its internal digital transformation efforts, leveraging data effectively to improve the efficiency and accuracy of administrative work.
In addition, on June 1, 2021, TechnoPro Holdings, Inc. was selected as a Digital Transformation (DX) Certified
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TechnoPro Holdings Inc. published this content on 10 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2021 06:30:09 UTC.