ZIGExN Co.,Ltd. Third Medium-Term Management Plan | ZIGExN Co.,Ltd. (3679) timely disclosure

Worth reading

56In 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

500

More than ¥10 billion (FY2031/3 revenue target)

Wording

Conditional

How definitive the wording is.

Contents of this document

Medium-Term Management Plan PresentationFY2027/3–FY2031/310 items taken from the company’s own explanation

What the company explained in this material

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Vertical HR revenue CAGR15%
Vertical HR operating profit CAGR11%
Vertical HR TAMApproximately ¥30 trillion
Life Service TAMApproximately ¥20 trillion
Vertical HR take rate15〜20%
Vertical HR operating margin20〜25%
Life Service take rate5〜10%
Life Service operating margin15〜20%

New initiatives

Rollout of ZIGExN Matching Agent (ZMA)
Integration of Living Tech and Life Service
Establishment of an AI Promotion Office
Introduction of a virtual company structure
Large-scale M&A funded by a strategic investment allocation of more than approximately ¥16 billion
Introduction of a policy for share repurchases and cancellations

Key KPIsA metric the company considers important as a management benchmark.

Industries served20 or more
Services acquired through M&AMore than 40
Number of corporate customersApproximately 23,000
Average customer spendApproximately ¥1.25 million
Number of M&A transactions since listing35 Engagements
Cumulative M&A investmentApproximately ¥23 billion
Cumulative EBITDA / investment-date EVApproximately 170
Investment recovery periodApproximately 3–5

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Number of corporate customersApproximately 23,000
Average customer spendApproximately ¥1.25 million
Vertical HR customer spend2.0x

Segment results

Vertical HR

RevenueFY26/3 ¥13,328 million

Operating profitFY26/3 ¥3,415 million

Life Service

RevenueFY26/3 ¥15,893 million

Operating profitFY26/3 -¥1,024 million

Medium-term management plan targets

Revenue
TargetMore than ¥50 billion
Target fiscal yearFY2031/3
EBITDA
TargetMore than ¥12 billion
Target fiscal yearFY2031/3
ROE
TargetApproximately 20%
Target fiscal yearFY2031/3

Financial targets

Net debt-to-equity ratio
TargetApproximately 1.0x
Net debt/EBITDA ratio
TargetApproximately 2.0x
Goodwill-to-equity ratio
TargetApproximately 1.0x
Equity ratio attributable to owners of the parent
TargetAt least 30%
FY26/3 actual results55.5%
ROE
TargetApproximately 20%
Target fiscal yearFY2031/3

Market Size / Share

Vertical HR labor-cost optimization market
ScaleApproximately ¥30 trillion
Life Service deal-closing and BPO market
ScaleApproximately ¥20 trillion
TAM profit (Vertical HR)¥0.9–1.5 trillion
TAM profit (Life Service)¥0.15–0.4 trillion

Payout ratio

Ordinary dividend: at least 30%. Shareholder returns: approximately 20% of operating cash flow

Acquisition of treasury shares

Share repurchases as an additional return allocation for the following fiscal year. Treasury shares will be cancelled until they account for approximately 10% of total shares issued

Contents of this document
Item	Details
Document type	Medium-Term Management Plan Presentation
Fiscal Period Covered	FY2027/3–FY2031/3
Segment results	Vertical HR Revenue FY26/3 ¥13,328 million / Operating profit FY26/3 ¥3,415 million / Life Service Revenue FY26/3 ¥15,893 million / Operating profit FY26/3 -¥1,024 million
Key KPIs	Indicator Industries served / Value 20 or more, Indicator Services acquired through M&A / Value More than 40, Indicator Number of corporate customers / Value Approximately 23,000, Indicator Average customer spend / Value Approximately ¥1.25 million, Indicator Number of M&A transactions since listing / Value 35 Engagements, Indicator Cumulative M&A investment / Value Approximately ¥23 billion, Indicator Cumulative EBITDA / investment-date EV / Value Approximately 170, Indicator Investment recovery period / Value Approximately 3–5
Unit price and quantity metrics	Indicator Number of corporate customers / Value Approximately 23,000, Indicator Average customer spend / Value Approximately ¥1.25 million, Indicator Vertical HR customer spend / Value 2.0x
Assumptions Underlying the Business Outlook	Item Vertical HR revenue CAGR / Value 15%, Item Vertical HR operating profit CAGR / Value 11%, Item Vertical HR TAM / Value Approximately ¥30 trillion, Item Life Service TAM / Value Approximately ¥20 trillion, Item Vertical HR take rate / Value 15〜20%, Item Vertical HR operating margin / Value 20〜25%, Item Life Service take rate / Value 5〜10%, Item Life Service operating margin / Value 15〜20%
Medium-term management plan targets	Indicator Revenue / Target More than ¥50 billion / Target fiscal year FY2031/3, Indicator EBITDA / Target More than ¥12 billion / Target fiscal year FY2031/3, Indicator ROE / Target Approximately 20% / Target fiscal year FY2031/3
Financial targets	Indicator Net debt-to-equity ratio / Target Approximately 1.0x, Indicator Net debt/EBITDA ratio / Target Approximately 2.0x, Indicator Goodwill-to-equity ratio / Target Approximately 1.0x, Indicator Equity ratio attributable to owners of the parent / Target At least 30% / FY26/3 actual results 55.5%, Indicator ROE / Target Approximately 20% / Target fiscal year FY2031/3
Payout ratio	Ordinary dividend: at least 30%. Shareholder returns: approximately 20% of operating cash flow
Acquisition of treasury shares	Share repurchases as an additional return allocation for the following fiscal year. Treasury shares will be cancelled until they account for approximately 10% of total shares issued
Market Size / Share	Market Vertical HR labor-cost optimization market / Scale Approximately ¥30 trillion, Market Life Service deal-closing and BPO market / Scale Approximately ¥20 trillion, Indicator TAM profit (Vertical HR) / Value ¥0.9–1.5 trillion, Indicator TAM profit (Life Service) / Value ¥0.15–0.4 trillion
New initiatives	Rollout of ZIGExN Matching Agent (ZMA), Integration of Living Tech and Life Service, Establishment of an AI Promotion Office, Introduction of a virtual company structure, Large-scale M&A funded by a strategic investment allocation of more than approximately ¥16 billion, Introduction of a policy for share repurchases and cancellations

Items this document does not state (19)

Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planBreakdown of Factors Affecting the ChangeNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendCapital expendituresOrders received and order backlogKey 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.

To expand the TAM and value delivered to customers by leveraging accumulated customer assets and industry-specific data, and becoming deeply involved in customers’ business processes from customer acquisition through deal closing and BPO. AI-driven productivity gains, the shift to closing-based fees and M&A in adjacent areas are also cited as growth drivers.

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.