First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027 | ZIGExN Co.,Ltd. (3679) timely disclosure

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Improvement

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Scale

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Wording

Conditional

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Contents of this document

Presentation materials on financial resultsFirst quarter of the fiscal year ending March 202715 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥7,807 million+16.0%

Operating profit¥1,601 million+13.0%

Net income¥1,065 million +10.0%profit attributable to owners of the parent

Operating profit margin20.5 %

Results for the three months of the current quarterRevenue: ¥7,807 million; EBITDA: ¥1,986 million; operating profit: ¥1,601 million; profit attributable to owners of the parent: ¥1,065 million; EPS: ¥10.73

Full-year earnings forecast

Revenue

¥33,500 million

EBITDA

¥8,320 million

Operating profit

¥6,430 million

Profit attributable to owners of the parent

¥4,390 million

Basic earnings per share

¥44.09

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Revenue23 %

Vertical HR revenue25 %

Life Service revenue22 %

EBITDA24 %

Operating profit25 %

Profit attributable to owners of the parent24 %

EPS24 %

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Progressing within the expected range against the earnings forecast

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Revenue increase

Growth in existing Vertical HR businesses
M&A effects

Factors behind the decline in Life Service revenue

Sanko Ad revenue in the first quarter of the previous fiscal year

¥144 million

Mirakus recruitment and temporary staffing revenue in the first quarter of the previous fiscal year

¥105 million

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

Taking seasonality and one-off factors into account

New initiatives

Integration of URG's recruitment business into タイズ
Absorption-type company split and organizational restructuring involving 保険マンモス
Introduction of a five-virtual-company structure
Establishment of the AX/AI and Security Promotion Office
Promotion of matching and business automation using AI

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

Number of corporate customers23,059 companies-1.5%
Average spend per corporate customer¥131 10,000+18.0%
Company-wide AI adoption rate96 %
Daily usage rate75 %
Percentage of personnel with intermediate to advanced AI skills36 %

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

Number of corporate customers23,059 companies-1.5%
Average spend per corporate customer¥131 10,000+18.0%
Number of Vertical HR customers14,495 companies
Vertical HR customer spend¥948 thousand
Number of Life Service customers8,564 companies
Average revenue per Life Service customer¥1,930 thousand

Segment results

Vertical HR

Revenue

¥3,826 million

Year on year against the same period last year+18.0%

Operating profit before allocation of common expenses

¥969 million

Life Service

Revenue

¥3,982 million

Year on year against the same period last year-3.0%

Operating profit before allocation of common expenses

¥868 million

Medium-term management plan targets

Target fiscal yearFY2031/3

RevenueMore than ¥50 billion

EBITDAMore than ¥12 billion

ROEApproximately 20%

Financial targets

ROE targetApproximately 20% (FY2031/3)

Actual equity attributable to owners of the parent ratio56.0%

Actual goodwill-to-equity ratio0.6x

Market Size / Share

The figure is Not disclosed (the materials state an aim to become the industry No. 1)

Orders received and order backlog

The presentation shows the total order backlog for the recruitment business, but the figure is Not disclosed

Number of employees

1,085 People

DetailsConsolidated employee count. Sales and customer success personnel increased substantially as a result of the M&A strategy and stepped-up hiring at タイズ, among other factors.

Annual Dividend

Annual dividend per share¥13.5 per share

Payout ratio

Approximately 30%

Acquisition of treasury shares

Acquisition amount¥0 million (¥0 billion)

Acquisition plansNot scheduled to be conducted

Contents of this document
Item	Details
Document type	Presentation materials on financial results
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥7,807 million (YoY +16.0%)
Operating profit	¥1,601 million (YoY +13.0%)
Net income	¥1,065 million (profit attributable to owners of the parent) (YoY +10.0%)
Operating profit margin	20.5 %
Results for the three months of the current quarter	Revenue: ¥7,807 million; EBITDA: ¥1,986 million; operating profit: ¥1,601 million; profit attributable to owners of the parent: ¥1,065 million; EPS: ¥10.73
Full-year earnings forecast	Revenue ¥33,500 million / EBITDA ¥8,320 million / Operating profit ¥6,430 million / Profit attributable to owners of the parent ¥4,390 million / Basic earnings per share ¥44.09
Progress against full-year forecast	Revenue 23 % / Vertical HR revenue 25 % / Life Service revenue 22 % / EBITDA 24 % / Operating profit 25 % / Profit attributable to owners of the parent 24 % / EPS 24 %
Self-assessment against the plan	Progressing within the expected range against the earnings forecast
Segment results	Vertical HR Revenue ¥3,826 million / yoy_pct 18 / Operating profit before allocation of common expenses ¥969 million / Life Service Revenue ¥3,982 million / yoy_pct -3 / Operating profit before allocation of common expenses ¥868 million
Breakdown of Factors Affecting the Change	Revenue increase Growth in existing Vertical HR businesses, M&A effects / Factors behind the decline in Life Service revenue Sanko Ad revenue in the first quarter of the previous fiscal year ¥144 million / Mirakus recruitment and temporary staffing revenue in the first quarter of the previous fiscal year ¥105 million
Key KPIs	Number of corporate customers 23,059 companies (YoY -1.5%), Average spend per corporate customer ¥131 10,000 (YoY +18.0%), Company-wide AI adoption rate 96 %, Daily usage rate 75 %, Percentage of personnel with intermediate to advanced AI skills 36 %
Unit price and quantity metrics	Number of corporate customers 23,059 companies (YoY -1.5%), Average spend per corporate customer ¥131 10,000 (YoY +18.0%), Number of Vertical HR customers 14,495 companies, Vertical HR customer spend ¥948 thousand, Number of Life Service customers 8,564 companies, Average revenue per Life Service customer ¥1,930 thousand
Number of employees	1,085 People
Assumptions Underlying the Business Outlook	Taking seasonality and one-off factors into account
Medium-term management plan targets	Target fiscal year FY2031/3 / Revenue More than ¥50 billion / EBITDA More than ¥12 billion / ROE Approximately 20%
Financial targets	ROE target Approximately 20% (FY2031/3) / Actual equity attributable to owners of the parent ratio 56.0% / Actual goodwill-to-equity ratio 0.6x
Annual Dividend	Annual dividend per share ¥13.5 per share / Breakdown Not disclosed
Payout ratio	Approximately 30%
Acquisition of treasury shares	Acquisition amount ¥0 million (¥0 billion) / Acquisition plans Not scheduled to be conducted / Number of Shares Not disclosed / Period Not disclosed
Orders received and order backlog	The presentation shows the total order backlog for the recruitment business, but the figure is Not disclosed
Market Size / Share	The figure is Not disclosed (the materials state an aim to become the industry No. 1)
New initiatives	Integration of URG's recruitment business into タイズ, Absorption-type company split and organizational restructuring involving 保険マンモス, Introduction of a five-virtual-company structure, Establishment of the AX/AI and Security Promotion Office, Promotion of matching and business automation using AI

Items this document does not state (7)

Ordinary incomeGross Profit MarginSelling, general and administrative expensesNumber of stores and locationsRisk amount incorporated into the outlookCapital expendituresKey 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.

In addition to growth in existing businesses, particularly Vertical HR, the effects of M&A contributed to higher revenue. In Vertical HR, growth in existing businesses such as タイズ and the consolidation effects of M&A contributed, while in Life Service, divestments and a slowdown in demand in some businesses had an impact.

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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