Medium-term Management Plan

The COPRO Group has drawn up our five-year medium-term management plan "COPRO Group Build the Future 2027" (FYE2023 - FYE2027) with the aim of further business growth.

The Company has set long-term targets for FYE2030 of ¥100 billion in sales and ¥10 billion in operating profit. In this medium-term management plan, we will provide the Group's unique value, and work to expand the scale of our business, by establishing and operating an ‘Technician Support Platform’, which will be the cornerstone for future growth.

In formulating this medium-term management plan, we have set as the purpose of our group ‘The Best Work Style. The Best Workers’. In our human resources business, human capital is the basis of corporate value formation. In other words, the number of excellent engineers and technicians we can secure determines our corporate growth. More than ever, we want to be close to each and every engineer and technician, and we are willing to treat them as customers as well as colleagues.

The market size of human resource services for the construction industry in FY2026 is expected to expand by +22.6% compared to FY2021. This is due to the shortage of young human resources caused by the declining birthrate, as well as the new overtime work limit regulations that began to be applied in April 2024. Due to the structural shortage of labor, serious lack of manpower is expected to continue in the future. On the other hand, the construction market is expected to expand against the backdrop of an increase in public works projects due to urban redevelopment and aging infrastructure, and our clients, general contractors and subcontractors, will continue to utilize outsourcing, which allows them to flexibly respond to increases and decreases in construction work while controlling labor costs, so we expect the use of temporary workers continue to increase.

*Yano Research Institute's "2023 Edition Current Status and Prospects for the Human Resources Business PART2: Human Resources Services by Industry & Occupation"

In Japan, against the background of the declining birthrate and aging population, the drop in the working population is a social issue. In the future, it is expected that it will be difficult to secure human resources not only in the construction industry, but in all other industries. Therefore, in the medium-term management plan, we decided to make our industry attractive for coming employees. We will support each engineer and technician, and not just those with experience in the industry, but also inexperienced and young people. By doing so, they can build careers as engineers and technicians, and work comfortably for a long time. This will result as a great value for our client companies.

With the ‘Technician Support Platform’, we will actively support temporary staff engineers and technicians to form their career paths, which has been left to their own initiative until now. To that end, we will create a career path formation system from scratch by establishing a training system. We will build a foundation even for new graduates and those who have no experience in the industry to walk the path as technicians with confidence.

The core of this medium-term management plan, the ‘Technician Support Platform’, will be built it in the first half of the plan period by continuing to design a career path system for dispatched engineers and technicians, and by improving the training system. In addition, we will work on business innovation through DX, and the expansion of the mechanical design and SES businesses, as well as the strengthening of governance.

Through the realization of the ‘Technician Support Platform’, we aim for sales of ¥40 billion and non-GAAP operating profit of ¥5 billion with 6,200 engineers and technicians by FYE2027. Also, in FYE2025, while endeavoring to further strengthen our business foundation, we will tackle measures to actively and efficiently invest in recruiting costs and improve the retention rate. As such, we forecast increases in revenues and profit in that FY.

*Non-GAAP operating profit is calculated by adding depreciation, amortization of goodwill and share-based remuneration expenses back to operating profit.

Dividends are the basis for shareholder returns, which we consider to be one of the important management issues, and our basic policy is to pay stable dividends. We will not reduce dividends, but rather maintain a consolidated dividend payout ratio of 50% or more, during the period covered by the medium-term management plan "COPRO Group Build the Future 2027" (from FYE2023 to FYE2027), depending on the profit growth achieved through aggressive investment.