Transition to a model with 25% growth in value-added sales and a 10% operating margin
First written in FY2023-Q3. 8 of 12 entries say "Softened", first in FY2024-Q2. Latest entry: 2026-09-30.
Members moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2019: 14 of 100 companies on the "Worse" side.
16 other companies' latest entry also says "Softened".
- 2026-09-30SoftenedRevision of earnings forecasts
「In addition to the planned withdrawal from low-priced projects, revenue and value-added revenue growth in the first half are expected to remain marginal and significantly below the previously announced forecasts due to some clients reducing investment as a result of the situation in the Middle East and demand for specialist personnel limited to executing specific skills declining more than expected because of AI.」
Value-added revenue growth is expected to remain marginal and significantly below the previous forecast. - FY2026SoftenedAnnual report
「Meanwhile, toward restoring profitability and transitioning to a high-growth business model as set out in the “Strategy for Medium-Term Growth,” we will accelerate a more substantial shift in our business position to raise the growth rate, aiming to achieve high-value-added revenue (*7) growth of 15% and an operating margin of 10% in the fiscal year ending March 2027.」
The company lowered its growth target from the previous plan centered on 25% high-value-added revenue growth to a plan targeting high-value-added revenue growth of 15% and an operating margin of 10% in the fiscal year ending March 2027. - FY2025SoftenedAnnual report
「In parallel with the measures described above, we will strongly promote the following 2 initiatives to raise high-value-added revenue growth to more than 20% over the medium term.」
Compared with the previous wording targeting 25% high-value-added revenue growth in the fiscal year ending March 2027, this filing uses wording targeting an increase to more than 20% over the medium term, weakening the specificity and level of the growth target. - FY2025-H1RestatedAnnual report
「By steadily implementing the policies described above, we aim to achieve high-value-added revenue growth of 25% and an operating margin of 10% in the fiscal year ending March 2027.」
The company reaffirmed its phased recovery plan to achieve 25% high-value-added revenue growth and a 10% operating margin in the fiscal year ending March 2027. High-value-added revenue in the current interim period increased 10.3% year on year, and the company also disclosed its progress toward the targets to date. - FY2024SoftenedAnnual report
「Through these measures, we will establish a highly profitable business, targeting an operating margin of 5% in the fiscal year ending March 2026 and 10% in the fiscal year ending March 2027.」
The company extended the timetable from its previous plan of achieving 25% high-value-added revenue growth and a 10% operating margin in the fiscal year ending March 2025 to a phased recovery plan targeting a 5% operating margin in the fiscal year ending March 2026 and 10% in the fiscal year ending March 2027. It retained its policy of ultimately targeting 25% high-value-added revenue growth and a 10% operating margin in the fiscal year ending March 2027. - FY2024-Q3SoftenedAnnual report
「From the fiscal year ending March 2026 onward, we aim for high-value-added revenue growth of 15% and an operating margin of at least 10% by substantially further restraining the hiring of new graduates.」
Compared with the previously stated model of 25% high-value-added revenue growth and a 10% operating margin, the company revised its plan from the fiscal year ending March 2026 onward to further restrain new graduate hiring and target high-value-added revenue growth of 15% and an operating margin of at least 10%. - FY2024-Q2SoftenedAnnual report
「Although the target for high-value-added revenue growth in the cumulative second quarter was set at 21%, actual growth was limited to 15%, and the operating margin declined substantially because the number of inactive personnel exceeded the initial plan.」
High-value-added revenue growth was limited to 15% against the 21% target, and the operating margin declined substantially because of an increase in inactive personnel. Although the policy of achieving a 10% operating margin at an early stage was maintained, the plan was revised to improve profitability on the assumption of restraining recruitment. - FY2024-Q1RestatedAnnual report
「We will continue to accelerate our sales strategy based on the separation of production and sales and our strategy of expanding specialist companies, aiming in the fourth quarter of the fiscal year ending March 2024 to transition to a high-growth, high-profitability model with quarterly high-value-added revenue growth of 25% and a 10% operating margin, as well as achieve our full-year consolidated earnings forecast.」
The company maintained its target of 25% growth in high-value-added revenue and a 10% operating margin on a quarterly run-rate basis in the fourth quarter of the fiscal year ending March 2024, and the means of achieving it through separation of production and sales and expansion of specialist companies. In the current quarter, high-value-added revenue increased 16.2% year on year and the company posted an operating loss of ¥562 million. - FY2023AdvancedAnnual report
「By continuing to make these investments, the Group aims to expand its human capital over the medium to long term, establish a business structure with 25% revenue growth and a 10% operating margin in 2025, and grow into a company with 10,000 employees and operating profit of approximately ¥10 billion by 2030.」
The company reaffirmed its target of 25% revenue growth and a 10% operating margin in 2025, linking it to investment in human capital. In the current fiscal year, high-value-added revenue increased 20.9% year on year and the operating margin exceeded 8%. - FY2023-Q3First statedAnnual report
「In the next fiscal year, as in the current fiscal year, we expect utilization and profitability to decline as we make upfront investments in new graduate and mid-career recruitment to expand our human capital with a view to the medium and long term. However, by implementing 3 improvement policies, namely, strengthening the sales structure through the separation of production and sales, further expanding a specialized company focused on non-Web-site operations, and improving the talent portfolio and fundamentally strengthening training through increased investment in mid-career recruitment, we will establish a high-growth model achieving a 25% increase in value-added sales and an operating margin of 10% in the fourth quarter of the fiscal year ending March 2024, in line with the target growth rate, and transition to a high-growth, high-profitability model achieving a 25% increase in value-added sales and an operating margin of 10% for the full fiscal year ending March 2025.」
The company stated for the first time targets of achieving 25% growth in high-value-added revenue and a 10% operating margin on a quarterly run-rate basis in the fourth quarter of the fiscal year ending March 2024, and 25% growth in high-value-added revenue and a 10% operating margin for the full fiscal year ending March 2025, linking these targets to the separation of production and sales, expansion of specialist companies and stronger mid-career hiring and training.