Financial summary for Reporting Period 61 (FY2023)
Market environment
●The global economy is slowly picking up in the “living with COVID” world.
●The automotive industry is in the midst of technological innovation such as CASE (connected, autonomous, shared, and electric), and the need for semiconductors is rapidly increasing due to the evolution of automotive software. These industries are committed to promoting advanced development regardless of current economic trends.
●Our business environment has not been significantly affected by the COVID-19 pandemic, the situation in Russia and Ukraine, or fluctuations in resource prices and exchange rates, and there is a strong demand for engineers.
State of engineer dispatching business
●The number of operative personnel was higher than for the previous period.
(●Number of engineers increased; utilization rate remained high due to the recovery trend in the demand for engineers.
●Placement of newly graduated engineers who joined us in 2022 progressed ahead of the initial schedule.)
●The unit price of engineers increased slightly compared with the previous period (a rising trend is observed for the second half of the year).
●Total work person-hours declined slightly compared with the previous period.
Expenses
●Progress in the placement of unplaced personnel led to a decrease in labor costs 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.)
●SG&A expenses increased slightly.
(Despite a decrease in labor costs, expenses for recruiting, travel, transportation, and others increased with a recovery in our recruiting and sales activities.)