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Management planning1447SAAF Holdings Co.,Ltd.Construction and Materials

Matters Concerning the Business Plan and Growth Potential_Medium-Term Management Plan (MTG2028)

A new medium-term management plan, MTG2028, has been formulated, targeting revenue of ¥35.3 billion, operating profit of ¥2.0 billion and an operating margin of 5.7% for the fiscal year ending March 2029. To transform the Company into a digital provider for frontline operations, management resources will be concentrated in four No. 1-class areas.

Worth reading
64In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
20
¥100 million (operating income target for the fiscal year ending March 2029)
Wording
Conditional
How definitive the wording is.

Items stated in the management plan

Formulated
Medium-Term Management Plan (MTG2028)Plan period Fiscal years ending March 2027 to March 2029
Publication date 30 June 2026
Net Sales+19.3%
基準 29,580Target35,300million
Operating profit+83.0%
基準 1,093Target2,000million
Operating profit margin+2.0pt
基準 3.7Target5.7%
Net income for the current fiscal year+117.4%
基準 460Target1,000million
ROE+0.8pt
基準 16.9Target17.7%

Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.

Investment amount by sectorField Research and development expenses / Amount Approximately ¥100 million / Subject Construction and Civil Engineering, Field Focused investment of management resources in four No. 1-class areas / Amount Not disclosed, Field Reskilling investment / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyThe basic policy is to pay stable and continuous dividends, with appropriate shareholder returns determined comprehensively based on business performance, financial condition and other factors. Numerical targets and the target period are not disclosed.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Key initiatives
01① No. 1-class local-government consulting
02② No. 1-class frontline IoT systems
03③ No. 1-class education personnel dispatch business
04④ No. 1-class geological database
051. Business shift and concentration
062. Strengthen the locally focused detached-housing business
073. Reduce indirect costs through digital improvements
081. Contract development of AI-enabled systems
092. Increase the added value of DX-support SES
103. Expand external sales of IoT solutions
111. Strengthen support for administrative DX
122. Expand the Machi-po local revitalization initiative
133. Roll out four Schoo partnership offerings
141. Shift to specialization in education personnel
152. Strengthen the network of 10,000 teachers
163. AI-enabled education for teachers through the Schoo partnership
17Full-scale rollout of Schoo partnership offerings
18Expand reskilling, local-government consulting and recruitment of digital talent
Plan assumptionsDomestic DX investment is expected to expand approximately 1.8-fold, from ¥5.2 trillion in 2024 to ¥9.2 trillion in 2030. Source: press release concerning Fuji Chimera Research Institute's 2025 Future Outlook for the Digital Transformation Market, Market Edition., Demand for personnel capable of using AI, robotics and other technologies is expected to increase from 2.36 million people in 2022 to 7.82 million in 2040, while supply in 2040 is expected to be 4.43 million people. Source: Ministry of Economy, Trade and Industry, "Revised Estimates of the Employment Structure in 2040.", The shortage of teachers at public schools worsened approximately 1.9-fold, from 2,065 people in 2021 to 3,827 people in 2025. Source: Ministry of Education, Culture, Sports, Science and Technology survey on the teacher shortage., New housing starts declined from 819,000 units in 2023 to 740,000 units in 2025, indicating a contraction phase. Source: Ministry of Land, Infrastructure, Transport and Tourism, "Building Construction Starts Statistics Survey.", The First Medium-Term Plan for National Resilience Implementation involves more than ¥20 trillion during 2026–2030. Source: Cabinet Secretariat, "First Medium-Term Plan for National Resilience Implementation.", The construction-site DX market is expected to expand approximately 2.1-fold, from ¥58.6 billion in 2024 to ¥125.0 billion in 2030. Source: Yano Research Institute survey of the construction-site DX market.
Segment targetSegment Consulting business / Timing Fiscal year ending March 2029 / Net Sales ¥4,368 million / Operating profit ¥886 million / Operating profit margin 20.3%, Segment Systems development business / Timing Fiscal year ending March 2029 / Net Sales ¥7,905 million / Operating profit ¥619 million / Operating profit margin 7.8%, Segment Human Resources Business / Timing Fiscal year ending March 2029 / Net Sales ¥2,089 million / Operating profit ¥383 million / Operating profit margin 18.3%, Segment Construction and Civil Engineering / Timing Fiscal year ending March 2029 / Net Sales ¥21,190 million / Operating profit ¥728 million / Operating profit margin 3.4%
Non-financial targetsIndicator Digital talent ratio / Target value Approximately 50% / Timing Fiscal year ending March 2029, Indicator Total digital talent headcount / Target value Approximately 700 people / Timing Fiscal year ending March 2029, Indicator Employees with Level 1 digital literacy / Target value 80% / Timing Fiscal year ending March 2029, Indicator Digital talent ratio / Target value Approximately 80% / Timing Fiscal year ending March 2032, Indicator Total digital talent headcount / Target value Approximately 1,000 people / Timing Fiscal year ending March 2032, Indicator New projects generated through the Schoo partnership / Target value Approximately 130 projects / Timing Fiscal year ending March 2029, Indicator Number of local-government customers / Target value Approximately 500 / Timing Fiscal year ending March 2029, Indicator Number of local governments / Target value 135 local governments / Timing Fiscal year ending March 2029, as stated in the roadmap, Indicator Teachers delivering AI-enabled classes / Target value Approximately 250 people / Timing Fiscal year ending March 2029, Indicator Teachers delivering AI-enabled classes / Target value 500 people / Timing Fiscal year ending March 2032, Indicator Number of API contracting companies / Target value 300 companies / Timing Fiscal year ending March 2032, Indicator Projects charged on a usage basis / Target value Approximately 3,500 projects / Timing Fiscal year ending March 2032
Size of the Target MarketMarket Domestic DX investment / Dimensions ¥5.2 trillion in 2024, ¥9.2 trillion in 2030 / Growth rate Approximately 1.8-fold / Source Press release concerning Fuji Chimera Research Institute's 2025 Future Outlook for the Digital Transformation Market, Market Edition, Market Construction-site DX market / Dimensions ¥58.6 billion in 2024, ¥125.0 billion in 2030 / Growth rate Approximately 2.1-fold / Source Yano Research Institute survey of the construction-site DX market, Market New housing starts / Dimensions 819,000 units in 2023, 740,000 units in 2025 / Growth rate ▲9.6% / Source Ministry of Land, Infrastructure, Transport and Tourism, "Building Construction Starts Statistics Survey", Market Infrastructure aging countermeasures / Dimensions More than ¥20 trillion during 2026–2030 / Growth rate Not disclosed / Source Cabinet Secretariat, "First Medium-Term Plan for National Resilience Implementation"
Risks identified by the company
Strengthening management of group companies (new)
Securing personnel (new)
Defects in products and services, including construction defects (ongoing)
Delays in acceptance inspections (new)
Information security management (ongoing)
Market fluctuations in raw-material prices (ongoing)
Dependence on interest-bearing debt (ongoing)
Investments and M&A (ongoing)
Litigation (new)
Accidents, disasters and other events (new)
Items stated in the management plan
ItemDetails
Plan nameMedium-Term Management Plan (MTG2028)
Plan periodFiscal years ending March 2027 to March 2029
Progress against the planFormulated
Sales Target¥29,580 million → ¥35,300 million(+19.3%)
Operating profit target¥1,093 million → ¥2,000 million(+83.0%)
Operating profit margin target3.7% → 5.7%
Net income target¥460 million → ¥1,000 million(+117.4%)
ROE target16.9% → 17.7%
Payout ratio / DOE policyThe basic policy is to pay stable and continuous dividends, with appropriate shareholder returns determined comprehensively based on business performance, financial condition and other factors. Numerical targets and the target period are not disclosed.
Investment amount by sectorField Research and development expenses / Amount Approximately ¥100 million / Subject Construction and Civil Engineering, Field Focused investment of management resources in four No. 1-class areas / Amount Not disclosed, Field Reskilling investment / Amount Not disclosed
Segment targetSegment Consulting business / Timing Fiscal year ending March 2029 / Net Sales ¥4,368 million / Operating profit ¥886 million / Operating profit margin 20.3%, Segment Systems development business / Timing Fiscal year ending March 2029 / Net Sales ¥7,905 million / Operating profit ¥619 million / Operating profit margin 7.8%, Segment Human Resources Business / Timing Fiscal year ending March 2029 / Net Sales ¥2,089 million / Operating profit ¥383 million / Operating profit margin 18.3%, Segment Construction and Civil Engineering / Timing Fiscal year ending March 2029 / Net Sales ¥21,190 million / Operating profit ¥728 million / Operating profit margin 3.4%
Non-financial targetsIndicator Digital talent ratio / Target value Approximately 50% / Timing Fiscal year ending March 2029, Indicator Total digital talent headcount / Target value Approximately 700 people / Timing Fiscal year ending March 2029, Indicator Employees with Level 1 digital literacy / Target value 80% / Timing Fiscal year ending March 2029, Indicator Digital talent ratio / Target value Approximately 80% / Timing Fiscal year ending March 2032, Indicator Total digital talent headcount / Target value Approximately 1,000 people / Timing Fiscal year ending March 2032, Indicator New projects generated through the Schoo partnership / Target value Approximately 130 projects / Timing Fiscal year ending March 2029, Indicator Number of local-government customers / Target value Approximately 500 / Timing Fiscal year ending March 2029, Indicator Number of local governments / Target value 135 local governments / Timing Fiscal year ending March 2029, as stated in the roadmap, Indicator Teachers delivering AI-enabled classes / Target value Approximately 250 people / Timing Fiscal year ending March 2029, Indicator Teachers delivering AI-enabled classes / Target value 500 people / Timing Fiscal year ending March 2032, Indicator Number of API contracting companies / Target value 300 companies / Timing Fiscal year ending March 2032, Indicator Projects charged on a usage basis / Target value Approximately 3,500 projects / Timing Fiscal year ending March 2032
Plan assumptionsDomestic DX investment is expected to expand approximately 1.8-fold, from ¥5.2 trillion in 2024 to ¥9.2 trillion in 2030. Source: press release concerning Fuji Chimera Research Institute's 2025 Future Outlook for the Digital Transformation Market, Market Edition., Demand for personnel capable of using AI, robotics and other technologies is expected to increase from 2.36 million people in 2022 to 7.82 million in 2040, while supply in 2040 is expected to be 4.43 million people. Source: Ministry of Economy, Trade and Industry, "Revised Estimates of the Employment Structure in 2040.", The shortage of teachers at public schools worsened approximately 1.9-fold, from 2,065 people in 2021 to 3,827 people in 2025. Source: Ministry of Education, Culture, Sports, Science and Technology survey on the teacher shortage., New housing starts declined from 819,000 units in 2023 to 740,000 units in 2025, indicating a contraction phase. Source: Ministry of Land, Infrastructure, Transport and Tourism, "Building Construction Starts Statistics Survey.", The First Medium-Term Plan for National Resilience Implementation involves more than ¥20 trillion during 2026–2030. Source: Cabinet Secretariat, "First Medium-Term Plan for National Resilience Implementation.", The construction-site DX market is expected to expand approximately 2.1-fold, from ¥58.6 billion in 2024 to ¥125.0 billion in 2030. Source: Yano Research Institute survey of the construction-site DX market.
Key initiatives① No. 1-class local-government consulting, ② No. 1-class frontline IoT systems, ③ No. 1-class education personnel dispatch business, ④ No. 1-class geological database, 1. Business shift and concentration, 2. Strengthen the locally focused detached-housing business, 3. Reduce indirect costs through digital improvements, 1. Contract development of AI-enabled systems, 2. Increase the added value of DX-support SES, 3. Expand external sales of IoT solutions, 1. Strengthen support for administrative DX, 2. Expand the Machi-po local revitalization initiative, 3. Roll out four Schoo partnership offerings, 1. Shift to specialization in education personnel, 2. Strengthen the network of 10,000 teachers, 3. AI-enabled education for teachers through the Schoo partnership, Full-scale rollout of Schoo partnership offerings, Expand reskilling, local-government consulting and recruitment of digital talent
Size of the Target MarketMarket Domestic DX investment / Dimensions ¥5.2 trillion in 2024, ¥9.2 trillion in 2030 / Growth rate Approximately 1.8-fold / Source Press release concerning Fuji Chimera Research Institute's 2025 Future Outlook for the Digital Transformation Market, Market Edition, Market Construction-site DX market / Dimensions ¥58.6 billion in 2024, ¥125.0 billion in 2030 / Growth rate Approximately 2.1-fold / Source Yano Research Institute survey of the construction-site DX market, Market New housing starts / Dimensions 819,000 units in 2023, 740,000 units in 2025 / Growth rate ▲9.6% / Source Ministry of Land, Infrastructure, Transport and Tourism, "Building Construction Starts Statistics Survey", Market Infrastructure aging countermeasures / Dimensions More than ¥20 trillion during 2026–2030 / Growth rate Not disclosed / Source Cabinet Secretariat, "First Medium-Term Plan for National Resilience Implementation"
Risks identifiedStrengthening management of group companies (new), Securing personnel (new), Defects in products and services, including construction defects (ongoing), Delays in acceptance inspections (new), Information security management (ongoing), Market fluctuations in raw-material prices (ongoing), Dependence on interest-bearing debt (ongoing), Investments and M&A (ongoing), Litigation (new), Accidents, disasters and other events (new)
Publication date30 June 2026
Items this document does not state (8)
ROIC targetTreasury share acquisition policyCost of capitalSelf-assessment of PBR and share priceTotal investment planResults under the previous planReason for revision or withdrawalDate of board resolution

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The Company will use the improvement in performance for the fiscal year ending March 2026 as the starting point for MTG2028 and establish a foundation as a digital provider for frontline operations by concentrating management resources in four No. 1-class areas, developing digital talent, and expanding its business to local governments and regional companies.

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Matters Concerning the Business Plan and Growth Potential_Medium-Term Management Plan (MTG2028) | SAAF Holdings Co.,Ltd. (1447) timely disclosure | Komori