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    6028   JP3545240008

TECHNOPRO HOLDINGS, INC.

(6028)
  Report
Delayed Japan Exchange  -  02:00 2022-08-17 am EDT
3395.00 JPY   +0.74%
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TechnoPro : Summary of the Consolidated Financial Statements (IFRS) for the Fiscal Year Ended June 30, 2021

08/10/2021 | 02:30am EDT

Translation

Notice: This is a translation of the original Japanese document and is provided for informational purposes only. If there are any

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
    1. Changes to important subsidiaries during the period (changes to "Specified Subsidiaries" that involve changes made to scope of consolidation): None
    2. Changes to accounting policies and accounting estimates
      1. Changes to accounting policies as required by IFRS: None
      2. Changes to accounting policies other than i.: None
      3. Changes to accounting estimates: None
    3. 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

1

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

2

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

3

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

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.


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