Komori
Earnings presentation2378RENAISSANCE,INCORPORATEDInformation and Communications, Services and Others

Notice Regarding the Review and Formulation of the Medium-Term Management Plan

The Company revised its previous "2024-2027 Medium-Term Management Plan" and formulated a new medium-term management plan covering fiscal years 2026 through 2030. While reorganizing unprofitable facilities and reducing costs, the Company aims to invest in home fitness and elderly care rehabilitation, among other areas, and transform its business portfolio.

Worth reading
61In 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
770
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Medium-Term Management Plan Presentation8 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥770 million
Operating profit¥35 million
Operating profit margin4.5 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Results showing a widening gap from the previous medium-term management plan
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • WACCApproximately 4–5%
  • Equity ratio upon adoption of the new lease accounting standardsExpected to decline to approximately 10%
New initiatives
  • Exit from 6 unprofitable facilities
  • Reform of the sports club business's earnings structure and elimination of unprofitable areas
  • Improving the efficiency of head-office operations and club management using digital technology and AI
  • Expanding the home fitness product range into rest and recovery, beauty, and nutrition
  • Resuming the opening of approximately 4 new facilities annually in the elderly care rehabilitation business from fiscal year 2027
  • Integrating customer management systems in fiscal years 2027–2028
  • Cash allocation of ¥14.0 billion for business investment, ¥10.0 billion to reduce interest-bearing debt, and ¥2.0 billion for shareholder returns
Key KPIsA metric the company considers important as a management benchmark.
  • Percentage of Female Managers30 %
  • Percentage of men taking parental leave100 %
  • Regular health checkup participation rate100 %
  • Follow-up measures after regular health checkups100 %
Medium-term management plan targets
Period CoveredFiscal years 2026-2030
Target fiscal yearFY2030
Net Sales¥77.0 billion
Operating profit¥3.5 billion
Operating profit margin4.5%
ROE10.0%
ROIC6.0%
Payout ratio40.0%
Equity ratio20.5%
Financial targets
FY2030
ROE10.0%
ROIC6.0%
Equity ratio20.5%
FY2035
Net Sales¥100 billion
Operating profit¥5 billion
Capital expenditures
¥140 million
NotesInvestment in the business over the next five years. Breakdown as capital expenditure: Not disclosed
Payout ratio
40 %
Target fiscal yearFY2030
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Net Sales¥770 million
Operating profit¥35 million
Operating profit margin4.5 %
Self-assessment against the planResults showing a widening gap from the previous medium-term management plan
Key KPIsIndicator name Percentage of Female Managers / Value 30 % / Year on year against the same period last year Not disclosed, Indicator name Percentage of men taking parental leave / Value 100 % / Year on year against the same period last year Not disclosed, Indicator name Regular health checkup participation rate / Value 100 % / Year on year against the same period last year Not disclosed, Indicator name Follow-up measures after regular health checkups / Value 100 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookItem WACC / Value Approximately 4–5%, Item Equity ratio upon adoption of the new lease accounting standards / Value Expected to decline to approximately 10%
Medium-term management plan targetsPeriod Covered Fiscal years 2026-2030 / Target fiscal year FY2030 / Net Sales ¥77.0 billion / Operating profit ¥3.5 billion / Operating profit margin 4.5% / ROE 10.0% / ROIC 6.0% / Payout ratio 40.0% / Equity ratio 20.5%
Financial targetsFY2030 ROE 10.0% / ROIC 6.0% / Equity ratio 20.5% / FY2035 Net Sales ¥100 billion / Operating profit ¥5 billion / ROIC Not disclosed
Payout ratio40 %
Capital expenditures¥140 million
New initiativesExit from 6 unprofitable facilities, Reform of the sports club business's earnings structure and elimination of unprofitable areas, Improving the efficiency of head-office operations and club management using digital technology and AI, Expanding the home fitness product range into rest and recovery, beauty, and nutrition, Resuming the opening of approximately 4 new facilities annually in the elderly care rehabilitation business from fiscal year 2027, Integrating customer management systems in fiscal years 2027–2028, Cash allocation of ¥14.0 billion for business investment, ¥10.0 billion to reduce interest-bearing debt, and ¥2.0 billion for shareholder returns
Items this document does not state (19)
Fiscal Period CoveredOrdinary incomeNet incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSegment resultsBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

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 determined that it was necessary to revise the medium-term management plan because persistently high costs, including utility and personnel expenses, changes in the business environment, delays in adapting the business structure to these changes, and an increase in unprofitable facilities had prevented it from escaping the previous structure in which increases in expenses exceeded increases in revenue.

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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding the Review and Formulation of the Medium-Term Management Plan | RENAISSANCE,INCORPORATED (2378) timely disclosure | Komori