CEO Message
Dear Shareholders and Investors:
I would like to express my deepest gratitude for your continued support.
TechnoPro Holdings, Inc. was listed on the First Section of the Tokyo Stock Exchange in December 2014 and transitioned to the Prime Market in April 2022 following the market reorganization. Under our five-year medium-term management plan, “Evolution 2026”, which began in the fiscal year starting July 2021, we have been striving for growth by focusing on enhancing the quality of the Core Business (Japan engineer staffing business). At the same time, we are working to transform our business model, expanding the Solution Business to stay ahead of long-term shifts in demand and supply. Unlike manufacturing companies, we do not produce specific products. We are committed to deepening your understanding of our business model and strategies and will continue to engage in active dialogue with you and transparent disclosure.
In our Corporate Governance Guidelines, we have established basic policies regarding “Constructive Dialogue with Shareholders,” “Capital Allocation,” and “Shareholder Returns.” We strive to practice management that focuses on value creation, maintaining a sound and robust financial foundation while keeping cost of capital and stock prices in mind. Additionally, we set a target for achieving ROIC for financial discipline in M&A, and we evaluate investment returns and our business portfolio through periodic strategic reviews.
The core elements of our long-standing basic principles of our capital and financial strategy are as follows:
- (1)Maintain a dividend payout ratio of 50% or higher
- (2)Achieve a return on equity (ROE) of 20% or higher
- (3)Achieve sustainable growth in earnings per share (EPS)
- (4)Maintain a debt/equity ratio (D/E) of less than 1(one)
- (5)Conduct management with an awareness of cost of capital, targeting return on invested capital (ROIC) and other disciplined measures
As of September 2024, TechnoPro Holdings, Inc. has not only been selected as a component of all ESG investment indices adopted by the Government Pension Investment Fund (GPIF) but also as a constituent of the JPX Prime 150 Index, based on equity spread criteria.
Moving forward, we will make efforts to enhance the trust-based relationships with our clients, employees, and society that support our business foundation, while promoting constructive dialogue with shareholders and investors and high transparency in management. Through business activities grounded in our Purpose, we aim to create both economic and social value, thereby continuously meeting the expectations of our stakeholders.
We sincerely appreciate your continued understanding and support.
September 2024
Takeshi Yagi
President, Representative Director and CEO
