Management KPIs Focused on Revenue, Gross Profit Margin, and Operating Profit
First written in FY2017. 8 of 12 entries say "Reframed", first in FY2019. Latest entry: FY2026.
Open Up Group moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
19 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「"Earnings targets": Achieve revenue of ¥200 billion, operating profit of at least ¥20 billion and an operating margin of at least 10% for the fiscal year ending June 2028 "Growth initiatives": Improve engineer compensation and benefits, expand recruitment channels, invest in AI agents and apply them to business operations, strengthen recruitment branding, reorganize the organization from the perspective of overall optimization, and promote business development taking into account technological innovation, including AI "Shareholder return policy": A payout ratio of at least 60%, progressive dividends, and flexible share buybacks based on the business environment, capital efficiency and other factors」
The medium-term management policy was updated with targets for the fiscal year ending June 2028: revenue of ¥200 billion, operating profit of at least ¥20 billion and an operating margin of at least 10%. The growth initiatives and shareholder return policy were also specified in greater detail, including AI investment, organizational restructuring, a payout ratio of at least 60% and share buybacks. - FY2026-H1ReframedAnnual report
「We have revised our resource allocation decisions and performance management classifications to better reflect actual management conditions, changing the management structure by dividing the former Mechanical/Electrical and IT field into the Mechanical/Electrical field and the IT field.」
For management metrics and performance management, the company changed from integrated management of the Mechanical/Electrical and IT fields to separate management units for allocating resources and evaluating performance in each field. - FY2024RaisedAnnual report
「"Earnings indicators": Achieve annualized growth of at least 10% in revenue and operating profit, and an operating margin of at least 10% "Growth indicators": At least 10% annualized growth in the number of domestic engineers, investment in employee development, and M&A "Shareholder return indicators": A payout ratio of at least 50%, progressive dividends, and share buybacks」
Following the expected achievement of the BY25 commitments, the company established three indicators—earnings, growth and shareholder returns—as its new medium-term management policy. It specified targets for revenue, operating profit, the number of domestic engineers, operating margin and payout ratio. - FY2024-Q1ReframedAnnual report
「From the beginning of the first quarter of the current cumulative consolidated period, to further strengthen management oversight, segment profit was changed from operating profit to an amount adjusted for the share of profit or loss of investments accounted for using the equity method.」
The segment profit management metric was changed from operating profit to an amount adjusted for the share of profit or loss of investments accounted for using the equity method, strengthening management oversight. - FY2023Progress exceeding the initial BY25 plan and formulation of a new planAnnual report
「As of the fiscal year ending June 2023, progress was exceeding the initial BY25 plan, and achievement of the targets under the BY25 commitment was considered certain. Accordingly, we formulated a new medium-term management plan and planned to disclose it at the end of the fiscal year ending June 2024.」
BY25 was progressing faster than initially planned, and the company indicated that achievement of the commitment targets was considered certain. It planned to formulate a new medium-term management plan and disclose it at the end of the fiscal year ending June 2024. - FY2023-Q1ReframedAnnual report
「Business profit is our proprietary profit metric, calculated by subtracting selling, general and administrative expenses from gross profit and excluding the effects of special items recorded in other income or other expenses, such as employment adjustment subsidies and impairment losses.」
In addition to the previously cited revenue, operating profit and EBITDA, the company used its proprietary business profit metric, which excludes the impact of special items, in explaining performance. - FY2022ReframedAnnual report
「In August 2021, we established the medium-term management plan BY25, covering the period through the fiscal year ending June 2025. Under the plan, we continue to pursue organic growth in the existing business segments and business expansion through M&A, and have set targets for revenue and operating profit under IFRS for the fiscal year ending June 2025. The target for the fiscal year ending June 2025 was revenue of ¥250 billion and operating profit of ¥25 billion, equivalent to a 10% operating margin. As of September 2022, the plan for the fiscal year ending June 2025 to which we commit, updated annually on a rolling basis, was expected to be revenue of ¥200 billion and operating profit of ¥16 billion.」
The BY25 financial targets were reorganized from the previous explanation centered on EBITDA to revenue and operating profit on an IFRS basis. The targets were set at revenue of ¥250 billion and operating profit of ¥25 billion, while the committed plan called for revenue of ¥200 billion and operating profit of ¥16 billion. - FY2021ReframedAnnual report
「In addition, the number of employees assigned to projects and the utilization rate are important objective non-financial indicators, which we also disclose.」
In addition to financial indicators such as revenue, profit margin, operating profit and EBITDA, the number of employees assigned to projects and the utilization rate were positioned as important non-financial indicators, expanding the scope of evaluation and disclosure. - FY2019ReframedAnnual report
「Our Group places importance on revenue and its growth rate, gross profit margin, operating profit and its growth rate, EBITDA (calculated by the company as operating profit + amortization of goodwill + depreciation and amortization + one-time M&A expenses) and its growth rate as indicators for evaluating the growth and profitability of each business.」
The explanation was expanded to include EBITDA and its growth rate among the key indicators, in addition to the previously cited revenue, gross profit margin and operating profit. - FY2017First statedAnnual report
「Our Group places importance on revenue and its growth rate, gross profit margin, operating profit and its growth rate as indicators for evaluating the growth and profitability of each business.」
Revenue, gross profit margin, operating profit and their respective growth rates are positioned as the key indicators for evaluating business growth and profitability.