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.
CEO interview video on Medium-Term Management Plan
Positioning of the Medium-Term Management Plan
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.
Establishing Our Purpose
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.
Market Growth Potential of the Core Business
As for the market size of construction and plant technician temporary staff dispatching, our core business, we estimate an average annual growth rate of 8.8%. The construction industry has a significant shortage of human resources compared to other industries. On the other hand, against the background of urban redevelopment, the construction market itself is expected to grow, albeit moderately. Therefore, outsourcing progresses at the general contractors, our clients, the temporary staffing usage ratio will continue to increase.
Basic Policy and Growth Strategy of the Medium-Term Management Plan
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.
Value Proposition Aim with the Growth Strategy
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.
Growth Strategy Roadmap
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.
Financial Performance Targets
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. As a run-up period for major growth from the next fiscal year onward, for FYE2023, we expect an increase in sales and a decrease in profits as we work on strengthening recruitment by an aggressive cost outlay.
*Non-GAAP operating profit is calculated by adding depreciation, amortization of goodwill and share-based remuneration expenses back to operating profit.
Plan for Shareholder Returns
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.