Worth reading
70In 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
100000
¥ million (revenue target for the fiscal year ending May 2035)Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
FormulatedROE+9.0pt
基準 2,026Target2,035%
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. For metrics expressed as percentages, differences are shown in percentage points (pt).
Net SalesNot disclosed → 100,000 (fiscal year ending May 2035)
Operating profitNot disclosed → 11,000 (fiscal year ending May 2035)
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planNot disclosed → Revenue was strong, but there is room to improve profitability
Statements about the use of capital
Payout ratio / DOE policyThe Company will use a payout ratio of approximately 40% as a guideline and, in principle, maintain or increase dividends. Dividends will be paid twice a year, as interim and year-end dividends. The applicable period is Not disclosed.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 recognizes its cost of equity as being in the range of 7% to 9%.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceAlthough the PBR has remained at or above 1.0x, the Company assesses it as below the average for the TSE Prime Market.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Focus area: external sales of the childcare system
02Focus area: overseas expansion
03Improving Profitability of Existing Businesses
04M&A Strategy
05Financial Strategy
06Non-financial strategy
Plan assumptionsExchange rate: ¥1 = IDR 115, Basis for calculating the Indonesian childcare market: target age of 0 to 5, dual-income household ratio of 52%, high-income household ratio of 20%, Indonesian childcare fees: IDR 3.5 million per month for the overall market and IDR 8.0 million per month for the Company's target market, Nursing care fee revisions: +0.5% each in 2027 and 2030, and +0.5% in 2033, Market environment forecasts, including the replacement of work by AI and robots, the elderly population, the working-age population and minimum wages
Segment targetSegment Childcare support services / Net Sales ¥50,000 million (fiscal year ending May 2035) / Profit Target Operating margin of 15.0% (fiscal year ending May 2035), Segment Comprehensive Human Resources Services / Net Sales ¥32,000 million (fiscal year ending May 2035) / Profit Target Operating margin of 10.1% (fiscal year ending May 2035), Segment Nursing Care-Related Services / Net Sales ¥12,000 million (fiscal year ending May 2035) / Profit Target Operating margin of 6.5% (fiscal year ending May 2035), Segment Other Businesses / Net Sales ¥7,815 million (fiscal year ending May 2035) / Profit Target Operating margin of 51.0% (fiscal year ending May 2035)
Non-financial targetsIndicator Number of facilities adopting the childcare system / Target value Cumulative total of 2,000 or more facilities / Timing Fiscal year ending May 2034 and thereafter, Indicator Number of childcare facilities opened in Southeast Asia / Target value At least 90 facilities cumulatively / Timing Fiscal year ending May 2035, Indicator Personnel sent overseas / Target value At least 500 people cumulatively / Timing Fiscal year ending May 2035, Indicator Number of overseas nursing care facilities opened / Target value At least 1 facility / Timing Fiscal year ending May 2035, Indicator Annual number of active staff / Target value At least 100,000 people / Timing Fiscal year ending May 2035, Indicator Greenhouse gas emissions (Scope 1 + 2) / Target value Carbon Neutrality / Timing FY2050, Indicator Conversion of electricity consumption to renewable energy / Target value 100％ / Timing FY2050
Size of the Target MarketChildcare facilities and related market: approximately ¥4.1 trillion (2025), approximately ¥4.05 trillion (2030 forecast), approximately ¥3.9 trillion (2035 forecast), After-school childcare market: approximately ¥600 billion (2025), approximately ¥710 billion (2030 forecast), approximately ¥720 billion (2035 forecast), Temporary staffing services market: approximately ¥9.5 trillion (2025), approximately ¥10.0 trillion (2030 forecast), approximately ¥10.1 trillion (2035 forecast), Designated facility market: approximately ¥700 billion (2025), approximately ¥730 billion (2030 forecast), approximately ¥800 billion (2035 forecast), Jakarta childcare market: TAM ¥307 billion (2022), ¥277 billion (2030 estimate), ¥290 billion (2035 estimate). SAM ¥159 billion, ¥144 billion and ¥151 billion, respectively. SAM targeting high-income households: ¥24 billion, ¥22 billion and ¥23 billion, respectively., Sources: Yano Research Institute, Children and Families Agency, Ministry of Health, Labour and Welfare, Statistics Bureau of Japan, National Institute of Population and Social Security Research, XENO BRAIN and others
Risks identified by the company
Changes in childcare demand due to the declining birthrate
Increases in personnel, food, utilities and facility-opening costs due to inflation
Recruitment difficulties, shortages of nursing care workers and shortages of childcare staff
Higher recruitment costs due to the persistently high job openings-to-applicants ratio
Higher personnel costs and billing rates due to wage increases
Deterioration in the recruitment environment in the human resources business
Delays in the entry of foreign personnel due to the COVID-19 pandemic
Intensifying area-based competition in the nursing care business
Dependence on supply and demand at client companies
Dependence on resident referral agencies in the nursing care business
Vacancy periods after a resident's death
Replacement of work by AI and robots
Legal and compliance requirements
Cyberattacks and information security
Failure to achieve the plan due to changes in the business environment and other factors. Additions and deletions from the previous plan are Not disclosed.
| Item | Details |
|---|---|
| Plan name | Long-Term Management Plan (Fiscal Years Ending May 2027 to May 2035) |
| Plan period | Starting fiscal year Fiscal year ending May 2027 / Final year Fiscal year ending May 2035 |
| Progress against the plan | Formulated |
| Sales Target | Not disclosed → 100,000 (fiscal year ending May 2035) |
| Operating profit target | Not disclosed → 11,000 (fiscal year ending May 2035) |
| ROE target | 12.7% (fiscal year ending May 2026) → At least 18% (fiscal year ending May 2035) |
| Payout ratio / DOE policy | The Company will use a payout ratio of approximately 40% as a guideline and, in principle, maintain or increase dividends. Dividends will be paid twice a year, as interim and year-end dividends. The applicable period is Not disclosed. |
| Cost of capital | The Company recognizes its cost of equity as being in the range of 7% to 9%. |
| Self-assessment of PBR and share price | Although the PBR has remained at or above 1.0x, the Company assesses it as below the average for the TSE Prime Market. |
| Segment target | Segment Childcare support services / Net Sales ¥50,000 million (fiscal year ending May 2035) / Profit Target Operating margin of 15.0% (fiscal year ending May 2035), Segment Comprehensive Human Resources Services / Net Sales ¥32,000 million (fiscal year ending May 2035) / Profit Target Operating margin of 10.1% (fiscal year ending May 2035), Segment Nursing Care-Related Services / Net Sales ¥12,000 million (fiscal year ending May 2035) / Profit Target Operating margin of 6.5% (fiscal year ending May 2035), Segment Other Businesses / Net Sales ¥7,815 million (fiscal year ending May 2035) / Profit Target Operating margin of 51.0% (fiscal year ending May 2035) |
| Non-financial targets | Indicator Number of facilities adopting the childcare system / Target value Cumulative total of 2,000 or more facilities / Timing Fiscal year ending May 2034 and thereafter, Indicator Number of childcare facilities opened in Southeast Asia / Target value At least 90 facilities cumulatively / Timing Fiscal year ending May 2035, Indicator Personnel sent overseas / Target value At least 500 people cumulatively / Timing Fiscal year ending May 2035, Indicator Number of overseas nursing care facilities opened / Target value At least 1 facility / Timing Fiscal year ending May 2035, Indicator Annual number of active staff / Target value At least 100,000 people / Timing Fiscal year ending May 2035, Indicator Greenhouse gas emissions (Scope 1 + 2) / Target value Carbon Neutrality / Timing FY2050, Indicator Conversion of electricity consumption to renewable energy / Target value 100％ / Timing FY2050 |
| Plan assumptions | Exchange rate: ¥1 = IDR 115, Basis for calculating the Indonesian childcare market: target age of 0 to 5, dual-income household ratio of 52%, high-income household ratio of 20%, Indonesian childcare fees: IDR 3.5 million per month for the overall market and IDR 8.0 million per month for the Company's target market, Nursing care fee revisions: +0.5% each in 2027 and 2030, and +0.5% in 2033, Market environment forecasts, including the replacement of work by AI and robots, the elderly population, the working-age population and minimum wages |
| Key initiatives | Focus area: external sales of the childcare system, Focus area: overseas expansion, Improving Profitability of Existing Businesses, M&A Strategy, Financial Strategy, Non-financial strategy |
| Results under the previous plan | Not disclosed → Revenue was strong, but there is room to improve profitability |
| Size of the Target Market | Childcare facilities and related market: approximately ¥4.1 trillion (2025), approximately ¥4.05 trillion (2030 forecast), approximately ¥3.9 trillion (2035 forecast), After-school childcare market: approximately ¥600 billion (2025), approximately ¥710 billion (2030 forecast), approximately ¥720 billion (2035 forecast), Temporary staffing services market: approximately ¥9.5 trillion (2025), approximately ¥10.0 trillion (2030 forecast), approximately ¥10.1 trillion (2035 forecast), Designated facility market: approximately ¥700 billion (2025), approximately ¥730 billion (2030 forecast), approximately ¥800 billion (2035 forecast), Jakarta childcare market: TAM ¥307 billion (2022), ¥277 billion (2030 estimate), ¥290 billion (2035 estimate). SAM ¥159 billion, ¥144 billion and ¥151 billion, respectively. SAM targeting high-income households: ¥24 billion, ¥22 billion and ¥23 billion, respectively., Sources: Yano Research Institute, Children and Families Agency, Ministry of Health, Labour and Welfare, Statistics Bureau of Japan, National Institute of Population and Social Security Research, XENO BRAIN and others |
| Risks identified | Changes in childcare demand due to the declining birthrate, Increases in personnel, food, utilities and facility-opening costs due to inflation, Recruitment difficulties, shortages of nursing care workers and shortages of childcare staff, Higher recruitment costs due to the persistently high job openings-to-applicants ratio, Higher personnel costs and billing rates due to wage increases, Deterioration in the recruitment environment in the human resources business, Delays in the entry of foreign personnel due to the COVID-19 pandemic, Intensifying area-based competition in the nursing care business, Dependence on supply and demand at client companies, Dependence on resident referral agencies in the nursing care business, Vacancy periods after a resident's death, Replacement of work by AI and robots, Legal and compliance requirements, Cyberattacks and information security, Failure to achieve the plan due to changes in the business environment and other factors. Additions and deletions from the previous plan are Not disclosed. |
| Publication date | 13 July 2026 |
Items this document does not state (8)
Operating profit margin targetNet income targetROIC targetTreasury share acquisition policyTotal investment planInvestment amount by sectorReason for revision or withdrawalDate 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 business and living environments are changing rapidly due to the rapid evolution and adoption of AI technology and other factors. The purpose of the long-term management plan is to clarify the Company's vision and strategy and achieve long-term growth in corporate value and sustainable growth.
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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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.