TechnoPro : Notice Regarding Launch of Medium-Term Management Plan Evolution 2026

	August 10, 2021
To Whom It May Concern,
Corporate Name:	TechnoPro Holdings, Inc.
	(Code:6028, TSE First Section)
Representative:	Takeshi Yagi, President, Representative Director & CEO
Contact:	Toshihiro Hagiwara, Managing Director & CFO
	(Tel. [phone])

Notice Regarding Launch of Medium-Term Management Plan Evolution 2026

On August 10, 2021, TechnoPro Holdings, Inc. launched a new medium-term management plan Evolution 2026, covering the period of five years from fiscal year ending June 30, 2022 to June 30, 2026.

For details, please refer to the attached document.

(Note on translation)

This document is provided for informational purpose only. If there are any discrepancies between this and the original, the original Japanese document prevails.

TechnoPro Group

Medium-Term Management Plan (FY22.6 - FY26.6)

"Evolution 2026"

TechnoPro Holdings, Inc. (code: 6028,TSE)

August 10, 2021

Copyright © TechnoPro Holdings, Inc. All rights reserved.

Contents

		Page
I	: Previous Plan Review	2
II	: Medium-Term Management Plan (FY22.6-FY26.6)	6
	i. Concept & Overview	7
	ii. Growth Strategy	15
	iii. Governance & Sustainability	29
	iv. Financial Target & Capital Policy	33

Copyright © TechnoPro Holdings, Inc. All rights reserved.	1

Strategic Initiatives in Previous Plan (announced Jul. 2017)

		[Core Business Processes]
Engineers	Recruiting	Human	Allocation	Customers
Resource
		Development
	(1) Stable growth in core business (engineer staffing)
	Diversification leveraging knowledge of core
Alliance	businesses and contact points between
	customers and engineers
M&A			Time
Talent	(2) Shift toward higher added value
Management		(3) Globalization
System
	(4) Move toward platforms utilizing IT

As a method of strategic advancement, pursue aggressive M&A activity

(five-year investment budget of 20 billion yen)

Copyright © TechnoPro Holdings, Inc. All rights reserved.	2

Previous Medium-Term Management Plan Review

Financials	Target (FY18.6-FY22.6)	Results (FY18.6-FY21.6)
		5-year targets				4-year results
	FY17.6	FY18.6	FY22.6	CAGR		FY17.6	FY18.6	FY21.6	CAGR
Revenue (million yen)	100,095	109,000	160,000	9.8%	Revenue (million yen)	100,095	116,529	161,316	12.7%
Operating profit (million yen)	9,647	10,600	17,000	12.0%	Operating profit (million yen)	9,647	11,238	19,461	19.2%
Net profit (million yen)	7,717	7,600	11,000	7.3%	Net profit (million yen)	7,717	8,498	13,245	14.5%
Engineers (no. of engineers)	14,346	15,400	19,600	6.4%	Engineers (no. of engineers)	14,346	16,797	20,330	9.1%
Unit sales price	626	635	655	0.9%	Unit sales price	626	630	634	0.3%
(thousand yen/month)	(thousand yen/month)
	more than 20％
ROE*	29.9%		ROE*	29.9%	24.5%	25.1%

Growth Strategy

Achieved one year ahead (excl. unit sales price)

(1)	Stable growth in core business (engineer staffing)	 Achieved growth in the number of engineers (quantity)
	mainly in IT sector, but improvement of unit sales
(2)	Shift toward higher added value		price (quality) remains slow
	Higher value addition, globalization, platform building
(3)	Globalization		are still in growing phase
			Elaborate strategy and bold resource
(4)	Move toward platforms utilizing IT	•	investment	⇓	needed
		•	Strengthening of organization to promote	for plan
M&A		and manage strategy progress
Five-year investment budget of 20 billion yen	 Invested 11.2 billion yen for M&A, but yet to become
	future growth driver
	*Higher ROE due to the effect from income tax deduction derived from losses carried forward until FY18.6

Copyright © TechnoPro Holdings, Inc. All rights reserved.	3