Worth reading
72In 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 → Fiscal year ending May 2035: 100,000 (fiscal year ending May 2027: 72,000; fiscal year ending May 2030: 78,000)
Operating profitNot disclosed → Fiscal year ending May 2035: 11,000 (fiscal year ending May 2027: 3,500; fiscal year ending May 2030: 5,000)
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planNot disclosed → Key achievements: continued opening of authorized daycare centers and after-school childcare facilities, promotion of ICT adoption and digital transformation, expansion of services for the logistics industry, and the opening of 2 facilities in Tokyo and 1 facility in Saitama
Investment amount by sectorField M&A / Amount Not disclosed, Field Investment in new business development / Amount Not disclosed, Field Capital Expenditure / Amount Not disclosed, Field Investment in strengthening the management platform / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyA dividend payout ratio of approximately 40% will be used as a guideline. In principle, dividends will be maintained or increased. Dividends will be paid twice a year (interim and year-end). 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 cost of equity is recognized 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 priceThe PBR will be maintained at 1.0x or higher, although it remains below the average for the TSE Prime Market. PBR was 1.51x for the fiscal year ended May 2026.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01External sales of the childcare system and related initiatives
02Overseas expansion
03Improving Profitability of Existing Businesses
04M&A Strategy
05Financial Strategy
06Non-financial strategy
07Improve profitability and become the childcare facility of choice
08Provide support leveraging the Company's strengths in areas facing labor shortages
09Improve the quality of nursing care services and employ foreign human resources
10Create and expand services that address industry challenges
11Sustainable corporate operations and creating the future
Plan assumptionsExchange rate around Jakarta: ¥1 = IDR115, Dual-income household rate in Jakarta: held at 52%, Share of high-income households in Jakarta: 20%, Childcare service fees in Jakarta: IDR3.5M per month for the overall market, IDR8.0M per month for the Company's target market, Nursing care fee revisions: +0.5% each in 2027, 2030 and 2033, National minimum wage: approximately ¥1,121 in 2025, ¥1,500 in 2030 and ¥1,800 in 2035
Segment targetSegment Childcare support services / Revenue for the fiscal year ending May 2030 ¥41,000 million / Revenue for the fiscal year ending May 2035 ¥50,000 million / Operating margin for the fiscal year ending May 2035 10.5％ / Target market share in 2035 More than 1.0%, Segment Comprehensive Human Resources Services / Revenue for the fiscal year ending May 2030 ¥26,000 million / Revenue for the fiscal year ending May 2035 ¥32,000 million / Operating margin for the fiscal year ending May 2035 8.5％, Segment Nursing Care-Related Services / Revenue for the fiscal year ending May 2030 ¥10,000 million / Revenue for the fiscal year ending May 2035 ¥12,000 million / Operating margin for the fiscal year ending May 2035 6.5％ / New facility opening target for 2035 10 or more facilities, Segment Other Businesses / Revenue for the fiscal year ending May 2030 ¥3,132 million / Revenue for the fiscal year ending May 2035 ¥7,815 million / Operating margin for the fiscal year ending May 2035 51.0％, Segment External sales of the childcare system / Revenue in 2035 ¥4 billion / Operating profit in 2035 ¥3 billion / Target number of facilities introduced Cumulative total of 2,000 or more facilities, Segment Overseas expansion / Revenue for the fiscal year ending May 2030 ¥500 million or more / Revenue for the fiscal year ending May 2035 ¥1.5 billion or more / 2030 target A cumulative total of 30 or more childcare facilities and 30 or more human resources dispatched / 2035 target A cumulative total of 90 or more childcare facilities and 500 or more human resources dispatched, and at least 1 nursing care facility opened
Non-financial targetsIndicator Greenhouse gas emissions (Scope 1 + 2) / Target value Carbon Neutrality / Timing By fiscal 2050, Indicator Transition of electricity consumption / Target value 100% conversion to renewable energy / Timing By fiscal 2050
Size of the Target MarketMarket Daycare center and related services market / 2025 Approximately ¥4.1 trillion / 2030 Approximately ¥4.05 trillion / 2035 Approximately ¥3.9 trillion / Source Not disclosed, Market After-school childcare market / 2025 Approximately ¥600 billion / 2030 Approximately ¥710 billion / 2035 Approximately ¥720 billion / Source Children and Families Agency, “FY2025 Status of Implementation of the After-School Child Sound Upbringing Program (After-School Children’s Clubs)”, Market Temporary staffing services market / 2025 Approximately ¥9.5 trillion / 2030 Approximately ¥10.0 trillion / 2035 Approximately ¥10.1 trillion / Source Yano Research Institute, “Current Status and Outlook of the Human Resources Business, 2025 Edition”, Market Designated facility market / 2025 Approximately ¥700 billion / 2030 Approximately ¥730 billion / 2035 Approximately ¥800 billion / Source Ministry of Health, Labour and Welfare, “Recent Trends in the Nursing Care Sector,” and other sources, Market Jakarta childcare market TAM / 2022 307 (¥ billion) / 2030 277 (¥ billion) / 2035 290 (¥ billion) / Source Not disclosed, Market Jakarta childcare market SAM (based on dual-income households) / 2022 159 (¥ billion) / 2030 144 (¥ billion) / 2035 151 (¥ billion) / Source Not disclosed, Market Jakarta childcare market SAM (based on high-income households targeted by the Company) / 2022 24 (¥ billion) / 2030 22 (¥ billion) / 2035 23 (¥ billion) / Source Not disclosed
Risks identified by the company
Slowing demand for new authorized daycare centers due to the declining birth rate
Higher food, labor, utilities and facility opening costs due to inflation
Higher recruitment and labor costs due to persistently high job-offer-to-applicant ratios and worsening hiring conditions
Accelerating shortages of nursing care personnel
Intensifying competition in the childcare and nursing care markets
Dependence on supply and demand at client companies
Limited revenue sources other than subsidies in the childcare business
Dependence on resident referral agencies in the nursing care business
Vacancy periods following the death of residents
Replacement of work by AI and robots
Compliance and information security issues
Actual results may differ materially from the plan due to various factors
Additions and removals from the previous plan: Not disclosed
| Item | Details |
|---|---|
| Plan name | Long-Term Management Plan (Fiscal Years Ending May 2027 to May 2035) |
| Plan period | Fiscal years ending May 2027 to May 2035 |
| Progress against the plan | Formulated |
| Sales Target | Not disclosed → Fiscal year ending May 2035: 100,000 (fiscal year ending May 2027: 72,000; fiscal year ending May 2030: 78,000) |
| Operating profit target | Not disclosed → Fiscal year ending May 2035: 11,000 (fiscal year ending May 2027: 3,500; fiscal year ending May 2030: 5,000) |
| ROE target | 12.7% (actual for the fiscal year ended May 2026) → 18% or higher (fiscal year ending May 2035) |
| Payout ratio / DOE policy | A dividend payout ratio of approximately 40% will be used as a guideline. In principle, dividends will be maintained or increased. Dividends will be paid twice a year (interim and year-end). The applicable period is Not disclosed. |
| Cost of capital | The cost of equity is recognized as being in the range of 7% to 9%. |
| Self-assessment of PBR and share price | The PBR will be maintained at 1.0x or higher, although it remains below the average for the TSE Prime Market. PBR was 1.51x for the fiscal year ended May 2026. |
| Investment amount by sector | Field M&A / Amount Not disclosed, Field Investment in new business development / Amount Not disclosed, Field Capital Expenditure / Amount Not disclosed, Field Investment in strengthening the management platform / Amount Not disclosed |
| Segment target | Segment Childcare support services / Revenue for the fiscal year ending May 2030 ¥41,000 million / Revenue for the fiscal year ending May 2035 ¥50,000 million / Operating margin for the fiscal year ending May 2035 10.5％ / Target market share in 2035 More than 1.0%, Segment Comprehensive Human Resources Services / Revenue for the fiscal year ending May 2030 ¥26,000 million / Revenue for the fiscal year ending May 2035 ¥32,000 million / Operating margin for the fiscal year ending May 2035 8.5％, Segment Nursing Care-Related Services / Revenue for the fiscal year ending May 2030 ¥10,000 million / Revenue for the fiscal year ending May 2035 ¥12,000 million / Operating margin for the fiscal year ending May 2035 6.5％ / New facility opening target for 2035 10 or more facilities, Segment Other Businesses / Revenue for the fiscal year ending May 2030 ¥3,132 million / Revenue for the fiscal year ending May 2035 ¥7,815 million / Operating margin for the fiscal year ending May 2035 51.0％, Segment External sales of the childcare system / Revenue in 2035 ¥4 billion / Operating profit in 2035 ¥3 billion / Target number of facilities introduced Cumulative total of 2,000 or more facilities, Segment Overseas expansion / Revenue for the fiscal year ending May 2030 ¥500 million or more / Revenue for the fiscal year ending May 2035 ¥1.5 billion or more / 2030 target A cumulative total of 30 or more childcare facilities and 30 or more human resources dispatched / 2035 target A cumulative total of 90 or more childcare facilities and 500 or more human resources dispatched, and at least 1 nursing care facility opened |
| Non-financial targets | Indicator Greenhouse gas emissions (Scope 1 + 2) / Target value Carbon Neutrality / Timing By fiscal 2050, Indicator Transition of electricity consumption / Target value 100% conversion to renewable energy / Timing By fiscal 2050 |
| Plan assumptions | Exchange rate around Jakarta: ¥1 = IDR115, Dual-income household rate in Jakarta: held at 52%, Share of high-income households in Jakarta: 20%, Childcare service fees in Jakarta: IDR3.5M per month for the overall market, IDR8.0M per month for the Company's target market, Nursing care fee revisions: +0.5% each in 2027, 2030 and 2033, National minimum wage: approximately ¥1,121 in 2025, ¥1,500 in 2030 and ¥1,800 in 2035 |
| Key initiatives | External sales of the childcare system and related initiatives, Overseas expansion, Improving Profitability of Existing Businesses, M&A Strategy, Financial Strategy, Non-financial strategy, Improve profitability and become the childcare facility of choice, Provide support leveraging the Company's strengths in areas facing labor shortages, Improve the quality of nursing care services and employ foreign human resources, Create and expand services that address industry challenges, Sustainable corporate operations and creating the future |
| Results under the previous plan | Not disclosed → Key achievements: continued opening of authorized daycare centers and after-school childcare facilities, promotion of ICT adoption and digital transformation, expansion of services for the logistics industry, and the opening of 2 facilities in Tokyo and 1 facility in Saitama |
| Size of the Target Market | Market Daycare center and related services market / 2025 Approximately ¥4.1 trillion / 2030 Approximately ¥4.05 trillion / 2035 Approximately ¥3.9 trillion / Source Not disclosed, Market After-school childcare market / 2025 Approximately ¥600 billion / 2030 Approximately ¥710 billion / 2035 Approximately ¥720 billion / Source Children and Families Agency, “FY2025 Status of Implementation of the After-School Child Sound Upbringing Program (After-School Children’s Clubs)”, Market Temporary staffing services market / 2025 Approximately ¥9.5 trillion / 2030 Approximately ¥10.0 trillion / 2035 Approximately ¥10.1 trillion / Source Yano Research Institute, “Current Status and Outlook of the Human Resources Business, 2025 Edition”, Market Designated facility market / 2025 Approximately ¥700 billion / 2030 Approximately ¥730 billion / 2035 Approximately ¥800 billion / Source Ministry of Health, Labour and Welfare, “Recent Trends in the Nursing Care Sector,” and other sources, Market Jakarta childcare market TAM / 2022 307 (¥ billion) / 2030 277 (¥ billion) / 2035 290 (¥ billion) / Source Not disclosed, Market Jakarta childcare market SAM (based on dual-income households) / 2022 159 (¥ billion) / 2030 144 (¥ billion) / 2035 151 (¥ billion) / Source Not disclosed, Market Jakarta childcare market SAM (based on high-income households targeted by the Company) / 2022 24 (¥ billion) / 2030 22 (¥ billion) / 2035 23 (¥ billion) / Source Not disclosed |
| Risks identified | Slowing demand for new authorized daycare centers due to the declining birth rate, Higher food, labor, utilities and facility opening costs due to inflation, Higher recruitment and labor costs due to persistently high job-offer-to-applicant ratios and worsening hiring conditions, Accelerating shortages of nursing care personnel, Intensifying competition in the childcare and nursing care markets, Dependence on supply and demand at client companies, Limited revenue sources other than subsidies in the childcare business, Dependence on resident referral agencies in the nursing care business, Vacancy periods following the death of residents, Replacement of work by AI and robots, Compliance and information security issues, Actual results may differ materially from the plan due to various factors, Additions and removals from the previous plan: Not disclosed |
| Publication date | 13 July 2026 |
Items this document does not state (7)
Operating profit margin targetNet income targetROIC targetTreasury share acquisition policyTotal investment planReason 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.As changes in the business and living environments accelerate due to the rapid evolution and adoption of AI technologies, among other factors, the Company will accelerate business development centered on people, looking beyond the Japanese market to overseas markets. It also aims to clarify its vision and strategies, enhance corporate value over the long term and achieve sustainable growth.
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