TechnoPro Group Financial Results for the 3rd Quarter of FYE June 2022
TechnoPro Holdings, Inc. (code: 6028, TSE)
April 28, 2022
Contents
Page
I II
: FY2022 Q3 Financial Overview : KPI Analysis [Japan]
i: Number of Engineers & Utilization Ratio ii : Unit Sales Price
29 9 13
III : Robosoft Update
IV : FY2022 Guidance
14 15
V
: Shareholder Return
17
VI : Appendix
VII : Data References
18 21
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 (PPA) at M&A transactions, 2) impairment loss, 3) changes in fair value amount and early exercise of Put Option (PO) liabilities, and 4) changes in fair value amount of Earn-Out (EO) liabilities
5. Per share amounts were calculated by using the number of shares AFTER the three-for-one stock split which was in effect on July 1, 2021
FY2022 Q3 Financial Overview
• Year-to-date Q3 FY22.6 revenue was 131.7 billion yen, up 9.6% year-on-year; gross profit was 34.2 billion yen, up 18.7% year-on-year; core operating profit was 14.4 billion yen, up 9.6% year-on-year; operating profit was 16.5 billion yen, up 11.0% year-on-year; net income was 12.0 billion yen, up 17.8% year-on-year
• Year-to-date Q3 FY22.6 gross profit was up 18.7% year-on-year mainly due to 1) the mix of increased allocation and decreased standby of domestic engineers (up 5.4%), 2) expansion of project-type services (up 4.6%), and 3) new consolidation of Robosoft's earnings (up 4.3%), while gross profit margin improved 2.0 pts and core operating profit increased year-on-year
• Net income significantly improved by reviewing estimated effective tax rate due to Helius' PO liability reversal gain
(yen in millions, except per share amounts)
Q3 (Three-Months Period) | Nine-Months Ended | Full-Year | ||||||||||
FY21.6 (Results) | FY22.6 (Results) | FY21.6 (Results) | FY22.6 (Results) | FY21.6 (Results) | FY22.6 (Guidance) | |||||||
YOY | Progress | YOY | YOY | |||||||||
Revenue | 40,729 | 45,354 | +4,624 | +11.4% | 120,181 | 131,712 | 75.7% | +11,531 | +9.6% | 161,316 | 174,000 | +7.9% |
Gross profit GP margin | 10,363 25.4% | 12,402 27.3% | +2,039 +1.9pt | +19.7% | 28,887 24.0% | 34,283 26.0% | ― | +5,396 +2.0pt | +18.7% | 39,727 24.6% | ― | ― |
SG&A expenses Ratio on revenue | 5,468 13.4% | 6,988 15.4% | +1,519 +2.0pt | +27.8% | 15,700 13.1% | 19,837 15.1% | ― | +4,136 +2.0 pts | +26.3% | 22,087 13.7% | ― | ― |
Core operating profit Core OP margin | 4,894 12.0% | 5,414 11.9% | +519 (0.1 pts) | +10.6% | 13,186 11.0% | 14,446 11.0% | 83.5% | +1,260 (0.0 pts) | +9.6% | 17,639 10.9% | 17,300 9.9% | (1.9%) |
Other income Other expenses | 469 165 | 112 82 | (357) (83) | ― ― | 1,984 291 | 2,265 189 | ― ― | +280 (102) | ― ― | 2,162 340 | ― ― | ― ― |
Operating profit OP margin | 5,198 12.8% | 5,444 12.0% | +245 (0.8 pts) | +4.7% | 14,879 12.4% | 16,522 12.5% | 85.6% | +1,642 +0.2pt | +11.0% | 19,461 12.1% | 19,300 11.1% | (0.8%) |
Profit before income taxes | 5,257 | 5,547 | +290 | +5.5% | 14,902 | 16,777 | 86.9% | +1,874 | +12.6% | 19,472 | 19,300 | (0.9%) |
Net profit Net profit margin | 3,626 8.9% | 4,283 9.4% | +656 +0.5 pts | +18.1% | 10,249 8.5% | 12,077 9.2% | 90.8% | +1,827 +0.6 pts | +17.8% | 13,245 8.2% | 13,300 7.6% | +0.4% |
Earnings per share | 33.66 | 39.76 | +6.10 | +18.1% | 95.15 | 112.11 | ― | +16.96 | +17.8% | 122.96 | 123.46 | +0.4% |
Dividend per share | ― | ― | ― | ― | 16.67 | 20.00 | ― | +3.33 | +20.0% | 61.67 | 62.00 | +0.5% |
Operating Profit Bridge
• Increase in recruitment and other costs and the dissipation of the government subsidy for continuous employment were sufficiently offset by the improvement of gross profit driven by the increased number of assigned engineers and the unit sales price hike, making year-to-date Q3 pro forma operating profit exceed previous year; (however, the increase of GP is expected to become smaller in Q4 since much larger number of new graduates compared to the previous year joined in April)
• Expenses recorded to date to implement Medium-Term Plan still remain at 55% against annual budget, but the full year guidance is based on assumption that all budgeted expenses will be spent by the end of this fiscal year
Strategic
YTD Q3 Results
+293, +0.2%
(yen in millions, ratio on revenue)
(953), (0.7%)
14,879 12.4%
15,172 11.5%
16,522 12.5%
(1,430)
FY21.6
OP Results
Dissipation of gov. subsidy
GP increase (excluding Robosoft)
Recruiting cost increaseOther cost increase
FY22.6
Pro Forma
Solution talent recruitingSolution talent training
Stock-basedRobosoftinvestment compensation
PO liability reversal gain
FY22.6
OP Guidance
Returning to NormalityExpenses to Implement
Medium-Term PlanOthers
Reference: Quarterly Performance
Revenue
60.0
40.0
20.0
0.0
FY21.6
Q1
FY22.6
Q1
FY21.6
Q2
FY22.6
Q2
FY21.6
Q3
FY22.6
Q3
FY21.6
Q4
YOY
Progress on full-year %
+6.2% 24.3%
+11.1%
+11.4%
―
―
―
25.0%
―
25.2%
―
25.5%
―
100.0%
―
Ave. no. of engineers
Ave. utilization ratio
20,795 92.7% 620
20,439 95.5% 639
20,287 94.8% 637
20,673 95.7% 660
19,986 96.2% 640
20,949 96.0% 673
20,229 94.7% 639
[21,950] [93.0%]
20,324 94.6% 634
[21,000] [95.0%]
Ave. monthly unit sales price (thousand yen)*
[650]
[655]
Working days*
Working hours per day*
56.2 8.44
55.7 8.49
58.6 8.47
58.2 8.49
56.5 8.51
55.7 8.51
57.7 8.47
[56.6] [8.48]
229.0 8.47
[226.3] [8.49]
Operating Profit
8.0
7.1
6.0
4.0
2.0
0.0
FY22.6 Full-Year
YOY | (9.5%) | +34.0% | +4.7% | ― | ― | |||||
Progress on full-year % | 22.4% | ― | 27.4% | ― | 26.7% | ― | 23.5% | ― | 100.0% | ― |
OP margin | 11.1% | 9.5% | 13.2% | 16.0% | 12.8% | 12.0% | 11.1% | ― | 12.1% | ― |
(yen in billions) | |
200.0 | |
100.0 | FY21.6:(R実es績ult)s |
0.0 | FY22.6:(R実es績ult)s |
† Figures in brackets indicate forecast at the time of publication
20.0
10.0
FY21.6:(R実es績ult)s
0.0
FY22.6:(R実es績ult)s
* Figures of two major subsidiaries in Japan (TechnoPro, Inc. & TechnoPro Construction, Inc.); Ave. monthly unit sales price includes all subsidiaries in Japan for FY22.6 (the same applies hereinafter)
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TechnoPro Holdings Inc. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 06:03:04 UTC.