News
Notice Regarding Difference between First Half Guidance and Results, Interim Dividend, Revisions to Full-Year Guidance and Dividend Forecast for FY2022
Feb 1, 2022
TechnoPro Holdings, Inc. hereby announced the difference between its consolidated earnings guidance for the cumulative first half period ended December 31, 2021 (July 1, 2021 to December 31, 2021) provided on August 10, 2021 and actual results disclosed today. The Company has also made an upward revision to its full-year consolidated earnings guidance for the fiscal year ending June 30, 2022 (July 1, 2021 to June 30, 2022) as described below.
In addition, the Board of Directors of TechnoPro Holdings today declared an interim dividend to the shareholders of record on December 31, 2021, and raised its year-end dividend forecast for the fiscal year ending June 30, 2022 as follows, to reflect revised earnings guidance.
1. Difference between Consolidated First Half Guidance and Actual Results, Revision to Consolidated Full-Year Earnings Guidance for the Fiscal Year Ending June 30, 2022
(1) Difference between Consolidated Earnings Guidance and Actual Results for First Half FY2022
| Revenue | Core operating profit | Operating profit | Profit before income taxes | Net profit attributable to owners of the parent company | Net profit per share (yen) | |
|---|---|---|---|---|---|---|
| Previous guidance (A) | 84,000 | 7,300 | 7,3000 | 7,250 | 5,000 | 46.41 |
| Actual results (B) | 86,358 | 9,032 | 11,078 | 11,229 | 7,794 | 72.35 |
| Difference (B − A) | 2,358 | 1,732 | 3,778 | 3,979 | 2,794 | — |
| Difference (%) | 2.8 | 23.7 | 51.8 | 54.9 | 55.9 | — |
| (Reference) H1 FY2021 results | 79,451 | 8,291 | 9,680 | 9,645 | 6,623 | 61.48 |
(Note)
(2) Revision to Consolidated Earnings Guidance for the Full-Year FY2022
| Revenue | Core operating profit | Operating profit | Profit before income taxes | Net profit attributable to owners of the parent company | Net profit per share (yen) | |
|---|---|---|---|---|---|---|
| Previous guidance (A) | 170,000 | 16,500 | 16,500 | 16,400 | 11,300 | 104.89 |
| Revised guidance (B) | 174,000 | 17,300 | 19,300 | 19,300 | 13,300 | 123.46 |
| Difference (B − A) | 4,000 | 800 | 2,800 | 2,900 | 2,000 | — |
| Difference (%) | 2.4 | 4.8 | 17.0 | 17.7 | 17.7 | — |
| (Reference) FY2021 results | 161,316 | 17,639 | 19,461 | 19,472 | 13,245 | 122.96 |
(Note)The Company conducted a three-for-one split of ordinary shares on July 1, 2021. “Net profit per share” for FY2021 is calculated on the assumption that the stock split was conducted at the beginning of the fiscal year.
(3) Reasons of Difference and Revision
In the consolidated first half period ended December 31, 2021, both of revenue and core operating profit surpassed the previously announced guidance mainly due to 1) the fact that the number of engineers, utilization ratio and average monthly unit sales price, each of which is a key KPI in domestic operations, exceeded the original plan, driven by the continued vigorous demand for the Group’s engineer staffing and project-type services in Japan, and 2) consolidation of the profit and loss of newly acquired Robosoft Technologies Private Limited from the second quarter period. Furthermore, both of operating profit and net profit largely exceeded the previous guidance due to reversal of the full amount of put option liabilities related to Helius Technologies Pte Ltd (recorded 1,863 million yen as other income), which is TechnoPro Holdings’ subsidiary with 51% shareholding. This accounting treatment was carried out based on the reasonable expectation that the conditions for exercising put option for the remaining 49% Helius shares, granted to its non-controlling shareholders under the shareholders agreement executed at the acquisition (amount of accumulated EBITDA of Helius from April 2017 to June 2022 to meet the pre-set criteria), could not be satisfied, and thereby the put option would not be exercised; accordingly the fair value of the said put option liabilities is deemed to become zero.
In addition, TechnoPro Holdings has raised its consolidated full-year guidance for the fiscal year ending June 30, 2022, reflecting actual results of the first half period mentioned above, as well as earnings guidance of Robosoft, which was not included in the previous guidance.
For further details, please see “TechnoPro Group Financial Results for the 2nd Quarter of FYE June 2022” disclosed today.
2. Interim Dividend and Revision to Year-End Dividend Forecast for FY2022
(1) Interim Dividend
| FY2022 Interim | Latest forecast | FY2021 Interim | |
|---|---|---|---|
| Record date | December 31, 2021 | December 31, 2021 | December 31, 2020 |
| Dividend per share | ¥20.00 | ¥20.00 | ¥16.67 |
| Total dividend amount | ¥2,154 million | — | ¥1,795 million |
| Effective date | February 28, 2022 | — | March 1, 2021 |
| Source of payment | Retained earnings | — | Retained earnings |
(Note)The Company conducted a three-for-one split of ordinary shares on July 1, 2021. Per share amount of interim dividend for FY2021 is calculated on the assumption that the stock split was conducted at the beginning of the fiscal year (the same applies hereinafter).
(2) Revision to Year-End Dividend Forecast
| Annual dividend per share (yen) | |||
|---|---|---|---|
| Interim | Year-end | Total | |
| Previous forecast | — | ¥33.00 | ¥53.00 |
| Revised forecast | — | ¥42.00 | ¥62.00 |
| Dividends for the current period (FY2022) | ¥20.00 | — | — |
| (Reference) Dividends paid for the previous period (FY2021) | ¥16.67 | ¥45.00 | ¥61.67 |
(3) Reasons of Interim Dividend and Revision to Year-End Dividend Forecast
TechnoPro Holdings’s basic stance on shareholder return is to maintain stable payment of interim and year-end dividend every year, in accordance with the dividend policy to distribute profits linked to business performance at the expected annual dividend payout ratio of 50%. Based on this basic stance and comprehensive consideration of the current business performance and financial conditions, TechnoPro Holdings declared an interim dividend of ¥20.00 per share for the fiscal year ending June 30, 2022, the same amount as in the latest forecast.
In terms of the year-end dividend for FY2022, TechnoPro Holdings sets a plan to distribute ¥42.00 per share (total annual dividend of ¥62.00 per share, including interim dividend of ¥20.00) based on the revised full-year earnings guidance and the annual dividend payout ratio of 50%, representing an increase of ¥9.00 per share compared with the previous forecast.
- (Note)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.