Past Financial Summary

Financial summary for Q1 of Reporting Period 61 (FY2023)

Market environment

●We anticipate a recovery from the severe conditions brought about by the pandemic.

●Manufacturers, our major customers, will continue to boost their R&D budgets.

State of engineer dispatching business

●The number of operative personnel surpassed that of the same period of the preceding year.
(Number of engineers increased; utilization rate remained high due to the recovery trend in the demand for engineers)

●The unit price of engineers dropped slightly from the same period of the preceding year.
(Prioritized placement negotiations for unplaced engineers)

●Total work person-hours dropped slightly from the same period of the preceding year.
(Although the daily average was essentially unchanged year on year, the number of workdays changed due to the difference in the holiday calendar from the preceding year.)

Expenses

●Progress in the placement of unplaced personnel led to a decrease in SG&A expenses and an increase in the cost of sales.
(Labor costs connected to engineers are recorded as SG&A expenses until they are assigned to our client companies, after which the costs are recorded under cost of sales.)

●Year-on-year decrease in new graduate engineers joining in April 2022 → Decrease in labor costs, etc.