Worth reading
71In 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
7664
¥ millionWording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+32.8%
基準 23,336Target31,000million
Operating profit+15.7%
基準 2,592Target3,000million
Net income for the current fiscal year+3.6%
基準 2,025Target2,098million
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.
Operating profit marginNot disclosed → 9.7% (FY2028 target)
ROENot disclosed → Over 15%
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planNet Sales 22,500 (FY2025 plan) / Operating profit 2,150 (FY2025 plan) / Net income for the current fiscal year 1,500 (FY2025 plan) → Net Sales 23,336 (FY2025 actual) / Operating profit 2,592 (FY2025 actual) / Net income for the current fiscal year 1,913 (FY2025 actual)（Net Sales 3.7% / Operating profit 20.6% / Net income for the current fiscal year 27.5%）
Investment amount by sectorField Growth Investment / Investment allocation 40% / Amount Not disclosed, Field Strengthening the foundation / Investment allocation 30% / Amount Not disclosed, Field Shareholder Returns / Investment allocation 30% / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyStable shareholder returns, with a payout ratio of 30% as a guideline. The applicable period is the Medium-Term Management Plan (FY2026-FY2028).The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalThe Company states that it will maintain an ROE level above the cost of shareholders' equity. The cost of shareholders' equity is not disclosed.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceThe Company states that it aims to improve its market valuation, as measured by PBR. It does not disclose a self-assessment that its current PBR level or share price is low.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
0101 Enhancing experiential value through data
0202 Making sustainability standard practice
0303 Strengthening the production system
0404 Optimizing the procurement process
0505 Rebuilding the management control system
0606 Renewing the human resources foundation that supports the individual
0707 Establishing the organizational foundation
0808 Strengthening branding
0909 Creating new value in the business-to-consumer area
1010 Specific consideration of overseas expansion
1111 M&A, capital alliances and business alliances
Plan assumptionsA labor shortage of approximately 3.41 million people in 2030 and 11 million people in 2040 is expected, The ¥3.6 trillion era of internet advertising, Operating cash flow and cash on hand will be used as sources of investment funding, Investment decisions will be based primarily on future cash-generating capacity as determined using the DCF method
Non-financial targetsIndicator Value added per employee / Target value +5.0% / Timing FY2028 / Comparison basis FY2025, Indicator Percentage of sales from implementation / Target value 80% / Timing FY2028, Indicator Number of nominated orders (percentage by number of orders) / Target value Maintain 80% / Timing Plan period, Indicator Nominated order rate (percentage of net sales) / Target value Range of 55%–70% / Timing Plan period
Size of the Target MarketMarket Events and exhibitions market / Scale ¥979.7 billion / Source Japan Event Industry Promotion Association, "2024 Estimated Event Industry Market Size", Market Advertising Market / Scale ¥8.0623 trillion / Source Dentsu Inc., "Advertising Expenditures in Japan 2025", Market Display Market / Scale ¥1.79 trillion / Source Yano Research Institute Ltd., "2025 Outlook and Business Strategy for the Display Industry Market", Market Experience Marketing sector / Scale ¥500 billion-plus / Source Not disclosed
Risks identified by the company
Economic Trends
Recruitment and development of human resources
Quality and safety management
Disasters, infectious diseases and other events
Reason for revision or withdrawal
The Company decided to discontinue the previously disclosed standalone-basis metrics for customer numbers and customer spending per customer, judging that their purpose had been fulfilled due to the increase in the number of subsidiaries and the growth in subsidiary performance. As operating profit will be established as a key management metric, the performance metric will be changed from gross profit margin to operating profit margin. The Company judged that the nominated order rate and number of nominated orders are appropriate performance metrics for its value creation model. During a period of expanding investment focused primarily on human capital, the Company judged that value added per employee is an appropriate performance metric.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan (FY2026-FY2028) |
| Plan period | FY2026-FY2028 |
| Progress against the plan | Formulated |
| Sales Target | 23,336 (FY2025 actual) → 31,000 (FY2028 target)（32.8%） |
| Operating profit target | 2,592 (FY2025 actual) → 3,000 (FY2028 target)（15.7%） |
| Operating profit margin target | Not disclosed → 9.7% (FY2028 target) |
| Net income target | 1,913 (FY2025 actual) → 2,098 (FY2028 target)（9.7%） |
| ROE target | Not disclosed → Over 15% |
| Payout ratio / DOE policy | Stable shareholder returns, with a payout ratio of 30% as a guideline. The applicable period is the Medium-Term Management Plan (FY2026-FY2028). |
| Cost of capital | The Company states that it will maintain an ROE level above the cost of shareholders' equity. The cost of shareholders' equity is not disclosed. |
| Self-assessment of PBR and share price | The Company states that it aims to improve its market valuation, as measured by PBR. It does not disclose a self-assessment that its current PBR level or share price is low. |
| Investment amount by sector | Field Growth Investment / Investment allocation 40% / Amount Not disclosed, Field Strengthening the foundation / Investment allocation 30% / Amount Not disclosed, Field Shareholder Returns / Investment allocation 30% / Amount Not disclosed |
| Non-financial targets | Indicator Value added per employee / Target value +5.0% / Timing FY2028 / Comparison basis FY2025, Indicator Percentage of sales from implementation / Target value 80% / Timing FY2028, Indicator Number of nominated orders (percentage by number of orders) / Target value Maintain 80% / Timing Plan period, Indicator Nominated order rate (percentage of net sales) / Target value Range of 55%–70% / Timing Plan period |
| Plan assumptions | A labor shortage of approximately 3.41 million people in 2030 and 11 million people in 2040 is expected, The ¥3.6 trillion era of internet advertising, Operating cash flow and cash on hand will be used as sources of investment funding, Investment decisions will be based primarily on future cash-generating capacity as determined using the DCF method |
| Key initiatives | 01 Enhancing experiential value through data, 02 Making sustainability standard practice, 03 Strengthening the production system, 04 Optimizing the procurement process, 05 Rebuilding the management control system, 06 Renewing the human resources foundation that supports the individual, 07 Establishing the organizational foundation, 08 Strengthening branding, 09 Creating new value in the business-to-consumer area, 10 Specific consideration of overseas expansion, 11 M&A, capital alliances and business alliances |
| Results under the previous plan | Net Sales 22,500 (FY2025 plan) / Operating profit 2,150 (FY2025 plan) / Net income for the current fiscal year 1,500 (FY2025 plan) → Net Sales 23,336 (FY2025 actual) / Operating profit 2,592 (FY2025 actual) / Net income for the current fiscal year 1,913 (FY2025 actual)（Net Sales 3.7% / Operating profit 20.6% / Net income for the current fiscal year 27.5%） |
| Reason for revision or withdrawal | The Company decided to discontinue the previously disclosed standalone-basis metrics for customer numbers and customer spending per customer, judging that their purpose had been fulfilled due to the increase in the number of subsidiaries and the growth in subsidiary performance. As operating profit will be established as a key management metric, the performance metric will be changed from gross profit margin to operating profit margin. The Company judged that the nominated order rate and number of nominated orders are appropriate performance metrics for its value creation model. During a period of expanding investment focused primarily on human capital, the Company judged that value added per employee is an appropriate performance metric. |
| Size of the Target Market | Market Events and exhibitions market / Scale ¥979.7 billion / Source Japan Event Industry Promotion Association, "2024 Estimated Event Industry Market Size", Market Advertising Market / Scale ¥8.0623 trillion / Source Dentsu Inc., "Advertising Expenditures in Japan 2025", Market Display Market / Scale ¥1.79 trillion / Source Yano Research Institute Ltd., "2025 Outlook and Business Strategy for the Display Industry Market", Market Experience Marketing sector / Scale ¥500 billion-plus / Source Not disclosed |
| Risks identified | Economic Trends, Recruitment and development of human resources, Quality and safety management, Disasters, infectious diseases and other events |
| Publication date | 17 March 2026 |
Items this document does not state (5)
ROIC targetTreasury share acquisition policyTotal investment planSegment targetDate 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 aim is to enhance corporate value by strengthening the value provided, renewing the management foundation and pursuing discontinuous growth, thereby shifting to a reproducible earnings model based on data utilization and systematization. Regarding the external environment, the Company explained that although willingness to invest in experiential value remains strong, it is necessary to address labor shortages and rising costs.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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