Notice Regarding Revision of Earnings Guidance and Dividend Forecast
Oct 30, 2020
TechnoPro Holdings, Inc. today announced a revision of its consolidated earnings guidance and dividend forecast for the second quarter (accumulated) of the fiscal year ending June 30, 2021, which was announced on August 7, 2020, as follows:
1. Revisions of Consolidated Earnings Guidance for the Second Quarter (accumulated) of the Fiscal Year Ending June 30, 2021 (July 1, 2020 – December 31, 2020)
|Revenue||Operating profit||Profit before income taxes||Net profit attributable to owners of the parent company||Net profit per share (yen)|
|Previous guidance (A)||74,000||5,500||5,400||3,700||103.03|
|Revised guidance (B)||77,500||8,500||8,400||5,800||161.52|
|Difference (B – A)||3,500||3,000||3,000||2,100||58.49|
|(Reference) Previous results|
(Year-to-date Q2 FY20.6)
2. Revision of Dividend Forecast for Fiscal Year Ending June 30, 2021 (July 1, 2020 – June 30, 2021)
|Annual dividend per share (yen)|
|Dividends paid for the previous period (FY20.6)||50.00||100.00||150.00|
3. Reasons for Revisions
TechnoPro Holdings, Inc. has revised its consolidated earnings guidance and dividend forecast for the accumulated second quarter period (first half) of the fiscal year ending June 30, 2021 as described above.
As mentioned in the section “Business performance forecasts” of the “Summary of the Consolidated Financial Statements (IFRS) for the Fiscal Year Ended June 30, 2020,” TechnoPro Holdings, Inc. would not expect its customers demand to recover drastically during the first half of the fiscal year ending June 30, 2021, thus the Company anticipated the considerable decrease in engineer hiring and the curtailment of overtime hours of its assigned engineers. With this assumption, TechnoPro Holdings, Inc. estimated consolidated earnings guidance for the first half of this fiscal year based on three main KPIs to constitute its recurring revenue; i) the number of engineers in Japan as of the end of the first half of 20,150 (up 0.7% compared to the end of the previous fiscal year), ii) the average utilization ratio during the first half period of 89.0% (down 6.7 pts year-on-year), and iii) the average monthly unit sales price during the first half period of 618 thousand yen (down 2.1% year-on-year). Although the impact from COVID-19 spread continues to be uncertain, the contract renewal ratio at September 2020 ended up with the same level as the previous year, and the new allocation of the engineers has proceeded more favorably than expected. The Company, therefore, has updated the KPIs and as a result, expects both revenue and profit during the first half period will surpass the previously announced guidance. For further details, please see “TechnoPro Group Financial Results for the 1st Quarter of FYE June 2021,” which was disclosed on October 30, 2020.
Meanwhile, the full year guidance and the year-end dividend forecast for the fiscal year ending June 30, 2021 remain undetermined at present, as it is difficult to reasonably estimate the impact of the spread of COVID-19 on the Company's business over the full year. TechnoPro Holdings, Inc. will promptly disclose its full year guidance as soon as it becomes possible to make reasonable estimates of the aforementioned impact. The Company aims to maintain the dividend payout ratio of 50% for annual dividend at present, although the amount of the year-end dividend is yet to be determined.
The above guidance and other forward-looking statements are based on information currently available to the Company and certain other premises judged to be reasonable, and the actual results may differ materially due to various factors.
(Note on translation)
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