Past Financial Summary

Financial summary for Q1 of Reporting Period62 (FY2024)

Market environment

●The global economy is slowly picking up in the “living with COVID” world.
Manufacturers, our major customers, continue to increase their R&D budgets.

●The automobile industry is in the midst of technological innovation such as responding to carbon neutrality by 2050 and CASE (connected, autonomous, shared, and electric), and it has a strong demand for the Company’s engineers.

State of engineer dispatching business

●The number of operative personnel was higher than for the same period last year.
Number of engineers increased. Utilization rate remained high due to the recovery trend in the demand for engineers.

●The unit price of engineers surpassed that of the same period of the preceding year.
Negotiation of unit prices with our client companies based on the work performance of engineers.

●Total work person-hours remained at the same level as the same period of the preceding year.

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.
Labor costs decreased due to a decrease in the number of newly graduated engineers hired in April compared with the previous year, and expenses for recruiting, travel, transportation, and others grew with a recovery in our recruiting and sales activities, although referral fees fell due to a delay in the progress of career hires.