Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
125
¥ billion (revenue target for the fiscal year ending August 2028)Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
Partially revisedNet Sales0.0%
基準 125Target125100 million
Operating profit0.0%
基準 21.7Target21.7100 million
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. The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planPlan (figures not disclosed) → Results for the fiscal year ended August 2026 (figures not disclosed)
Investment amount by sectorField M&A Investment / Amount ¥6 billion–¥10 billion / Period FY26-28, Field Business Development / Amount Up to approximately ¥300 million / Period FY26-28
Statements about the use of capital
Payout ratio / DOE policyA progressive dividend policy targeting a consolidated dividend payout ratio of 33%, under which dividends will generally be maintained or increased without reducing them. The applicable period is 3 years (FY26-28).The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyShare repurchases will be considered depending on the share price level and available funds. Although the plan states a shareholder return allocation of at least ¥1 billion for FY26-28, it does not commit to making repurchases.
Self-assessment of PBR and share priceThe Company's assessment that its PBR is low has not been disclosed. The plan states that share repurchases will be considered depending on the share price level.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01A: Continued expansion of the PRC and DM business organization
02B: Improving productivity through the use of AI
03C: Accelerating growth of the PR platform business through the use of TikTok
04D: Expansion into Southeast Asia
Plan assumptionsItem Southeast Asian marketing market / Figures US$28.34 billion in 2025, US$56.51 billion in 2030, CAGR of 14.8% from 2025 to 2030 / Source Mordor Intelligence『SOUTH-EAST ASIA ADVERTISING MARKET (2025-2030)』, Item Domestic advertising market / Figures ¥8.1 trillion, 105% year on year / Source Dentsu, Advertising Expenditures in Japan in 2025, Item Exchange rate / Figures US$1 = ¥158.53 / Purpose Conversion of the Vero Group's results and acquisition price
Segment targetSegment PR Consulting / FY Aug 2026 actual Revenue: ¥6,211 million; operating profit before amortization of goodwill: ¥1,347 million / FY Aug 2026 → FY Aug 2028 target Indicative growth rate: 15–20% CAGR, Segment Digital Marketing / FY Aug 2026 actual Revenue: ¥1,517 million; operating profit before amortization of goodwill: ¥297 million / FY Aug 2026 → FY Aug 2028 target Indicative growth rate: 15–25% CAGR, Segment PR Platform / FY Aug 2026 actual Revenue: ¥1,144 million; operating profit before amortization of goodwill: ¥299 million / FY Aug 2026 → FY Aug 2028 target Indicative growth rate: 15–25% CAGR
Non-financial targetsIndicator Number of PR professionals / Target value 274 people / Timing FY28 (fiscal year ending August 2028), Indicator Number of PR professionals (at fiscal year-end) / Target value 229 people / Timing Fiscal year ending August 2027, Indicator Reduction in time required to prepare releases / Target value Expected reduction of more than 60% / Timing After the introduction of AI agents, Indicator マテリアルリンクス gross profit / Target value Expected growth of 180% / Timing Fiscal year ending August 2027
Size of the Target MarketJapan's domestic advertising expenditure market is ¥8.1 trillion (105% of the prior year, a record high), while the fluid advertising market, the Company's primary focus, is approximately ¥890 billion and the advertising agency market is approximately ¥3.0 trillion. Southeast Asia's marketing market was US$28.34 billion in 2025 and is projected to reach US$56.51 billion in 2030, representing a CAGR of 14.8%. Sources: Dentsu, "Advertising Expenditures in Japan in 2025"; Mordor Intelligence, "SOUTH-EAST ASIA ADVERTISING MARKET (2025-2030)".
Risks identified by the company
The basic agreement with the Vero Group does not unconditionally obligate the parties to execute the definitive agreement or complete the share acquisition.
The acquisition price may change as a result of due diligence and discussions toward the execution of the definitive agreement.
The earnings forecast for the fiscal year ending August 2027 does not incorporate the impact of the Vero Group share acquisition, excluding advisory fees and other costs.
The prioritization of investment in AI may result in a slight decline in productivity in the fiscal year ending August 2027, and the timing and effects may change.
Reason for revision or withdrawal
To review the specific measures for achieving the plan in light of advances in AI beyond the Company's assumptions and progress in M&A in Southeast Asia.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan |
| Plan period | FY26-28 (fiscal years ending August 2026 to August 2028) |
| Progress against the plan | Partially revised |
| Sales Target | ¥125 100 million → ¥125 100 million（0%） |
| Operating profit target | ¥21.7 100 million → ¥21.7 100 million（0%） |
| Payout ratio / DOE policy | A progressive dividend policy targeting a consolidated dividend payout ratio of 33%, under which dividends will generally be maintained or increased without reducing them. The applicable period is 3 years (FY26-28). |
| Treasury share acquisition policy | Share repurchases will be considered depending on the share price level and available funds. Although the plan states a shareholder return allocation of at least ¥1 billion for FY26-28, it does not commit to making repurchases. |
| Self-assessment of PBR and share price | The Company's assessment that its PBR is low has not been disclosed. The plan states that share repurchases will be considered depending on the share price level. |
| Investment amount by sector | Field M&A Investment / Amount ¥6 billion–¥10 billion / Period FY26-28, Field Business Development / Amount Up to approximately ¥300 million / Period FY26-28 |
| Segment target | Segment PR Consulting / FY Aug 2026 actual Revenue: ¥6,211 million; operating profit before amortization of goodwill: ¥1,347 million / FY Aug 2026 → FY Aug 2028 target Indicative growth rate: 15–20% CAGR, Segment Digital Marketing / FY Aug 2026 actual Revenue: ¥1,517 million; operating profit before amortization of goodwill: ¥297 million / FY Aug 2026 → FY Aug 2028 target Indicative growth rate: 15–25% CAGR, Segment PR Platform / FY Aug 2026 actual Revenue: ¥1,144 million; operating profit before amortization of goodwill: ¥299 million / FY Aug 2026 → FY Aug 2028 target Indicative growth rate: 15–25% CAGR |
| Non-financial targets | Indicator Number of PR professionals / Target value 274 people / Timing FY28 (fiscal year ending August 2028), Indicator Number of PR professionals (at fiscal year-end) / Target value 229 people / Timing Fiscal year ending August 2027, Indicator Reduction in time required to prepare releases / Target value Expected reduction of more than 60% / Timing After the introduction of AI agents, Indicator マテリアルリンクス gross profit / Target value Expected growth of 180% / Timing Fiscal year ending August 2027 |
| Plan assumptions | Item Southeast Asian marketing market / Figures US$28.34 billion in 2025, US$56.51 billion in 2030, CAGR of 14.8% from 2025 to 2030 / Source Mordor Intelligence『SOUTH-EAST ASIA ADVERTISING MARKET (2025-2030)』, Item Domestic advertising market / Figures ¥8.1 trillion, 105% year on year / Source Dentsu, Advertising Expenditures in Japan in 2025, Item Exchange rate / Figures US$1 = ¥158.53 / Purpose Conversion of the Vero Group's results and acquisition price |
| Key initiatives | A: Continued expansion of the PRC and DM business organization, B: Improving productivity through the use of AI, C: Accelerating growth of the PR platform business through the use of TikTok, D: Expansion into Southeast Asia |
| Results under the previous plan | Plan (figures not disclosed) → Results for the fiscal year ended August 2026 (figures not disclosed) |
| Reason for revision or withdrawal | To review the specific measures for achieving the plan in light of advances in AI beyond the Company's assumptions and progress in M&A in Southeast Asia. |
| Size of the Target Market | Japan's domestic advertising expenditure market is ¥8.1 trillion (105% of the prior year, a record high), while the fluid advertising market, the Company's primary focus, is approximately ¥890 billion and the advertising agency market is approximately ¥3.0 trillion. Southeast Asia's marketing market was US$28.34 billion in 2025 and is projected to reach US$56.51 billion in 2030, representing a CAGR of 14.8%. Sources: Dentsu, "Advertising Expenditures in Japan in 2025"; Mordor Intelligence, "SOUTH-EAST ASIA ADVERTISING MARKET (2025-2030)". |
| Risks identified | The basic agreement with the Vero Group does not unconditionally obligate the parties to execute the definitive agreement or complete the share acquisition., The acquisition price may change as a result of due diligence and discussions toward the execution of the definitive agreement., The earnings forecast for the fiscal year ending August 2027 does not incorporate the impact of the Vero Group share acquisition, excluding advisory fees and other costs., The prioritization of investment in AI may result in a slight decline in productivity in the fiscal year ending August 2027, and the timing and effects may change. |
| Date of board resolution | 14 October 2026 |
| Publication date | 14 October 2026 |
Items this document does not state (6)
Operating profit margin targetNet income targetROE targetROIC targetCost of capitalTotal investment plan
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.To review the specific measures for achieving the plan in light of advances in AI beyond the Company's assumptions and progress in M&A in Southeast Asia.
How to read this page
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.