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Presentation materials for financial results3962CHANGE Holdings,Inc.Information and Communications, Services and Others

Revised Medium-Term Management Plan Digitize & Digitalize Japan (Phase 3) (Fiscal Years Ending March 2026–March 2030)

The target for achieving ¥18.0 billion in operating income has been deferred by 2 years, from the fiscal year ending March 2028 to the fiscal year ending March 2030, and growth targets by business have been revised. While reducing the M&A budget from ¥30.0 billion to ¥13.0 billion, the Company has changed its capital allocation policy to place greater emphasis on dividends and share buybacks.

Worth reading
54Recurring
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
2
Years deferred
Wording
Conditional
How definitive the wording is.

Contents of this document

Medium-Term Management Plan PresentationActual results for the fiscal year ending March 2026 and targets for the fiscal year ending March 203011 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥52,827 million
Operating profit¥11,225 million
Net income¥6,937 million
Operating profit margin
Rate21.2% (fiscal year ending March 2026 actual)
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating income for the fiscal year ending March 2026 was ¥11.2 billion, below the ¥14.0 billion forecast
New initiatives
  • WAmazing株式会社 plans to spin off its 2 tourism-related businesses and establish a joint venture (targeting Q2)
  • Full-scale entry into the inbound promotion business
  • Reduce the M&A budget from ¥30.0 billion to ¥13.0 billion and prioritize organic growth and alliances
  • Set a ¥5.0 billion share buyback authorization
  • Subject to approval at the ordinary general meeting of shareholders to be held in June 2025, transition to a company with an Audit and Supervisory Committee
Key KPIsA metric the company considers important as a management benchmark.
  • EPS¥99.71
  • ROE15.8 %
  • Number of municipalities served1,733 Municipalities as of 30 April 2025
  • Number of regional financial institutions partnered with the SBI Group91 Financial institution
  • Number of corporate customers1,636 companies
Segment results
  • NEW-IT Transformation
    Revenue23,841
    Operating profit1,263
  • Public Tech
    Revenue29,591
    Operating profit12,439
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2030
Revenue70,000
Operating profit18,000
Profit for the period attributable to owners of the parent11,000
EPS168
ROE16.5%
Dividend per share¥36.7
Financial targets
Operating profit margin
Actual results for the fiscal year ending March 202621.2%
Target for the fiscal year ending March 203025.7%
ROE
Actual results for the fiscal year ending March 202615.8%
Target for the fiscal year ending March 203016.5%
Net debt/EBITDA ratioNet debt/EBITDA: 0.2x (fiscal year ending March 2026)
Net debt/equityNet debt/equity: 6% (fiscal year ending March 2026)
Risk assets/equityRisk assets/equity: 81% (fiscal year ending March 2026)
Market Size / Share
  • Domestic DX market¥5,275.9 billion in fiscal 2024 and ¥9,266.6 billion in fiscal 2030
  • Cybersecurity Market¥652.6 billion in fiscal 2023 and ¥959.9 billion in fiscal 2029
  • Hometown Tax DonationsApproximately ¥1.2 trillion currently; potential donation deduction market of ¥2.7 trillion
  • International visitors to Japan36.87 million in 2024; target of 60.00 million in 2030
  • Furusato Choice's share of contracted municipalities1,733 municipalities, more than 95% of all municipalities
Capital expenditures
¥6,000 million 4-year cumulative
Annual Dividend
Annual dividend per share¥23.0 for the fiscal year ending March 2026, ¥26.0 forecast for the fiscal year ending March 2027, and ¥36.7 forecast for the fiscal year ending March 2030
Payout ratio
Floor of 15%; 24% at an ROE of 15% (based on a DOE of 3.6%)
Acquisition of treasury shares
Amount under the acquisition limit¥5 billion
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Fiscal Period CoveredActual results for the fiscal year ending March 2026 and targets for the fiscal year ending March 2030
Net Sales¥52,827 million
Operating profit¥11,225 million
Net income¥6,937 million
Operating profit marginRate 21.2% (fiscal year ending March 2026 actual) / Year-on-year change (points) Not disclosed
Self-assessment against the planOperating income for the fiscal year ending March 2026 was ¥11.2 billion, below the ¥14.0 billion forecast
Segment resultsSegment NEW-IT Transformation / Revenue 23,841 / Operating profit 1,263 / Year on year against the same period last year Not disclosed, Segment Public Tech / Revenue 29,591 / Operating profit 12,439 / Year on year against the same period last year Not disclosed
Key KPIsIndicator name EPS / Value ¥99.71 / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 15.8 % / Year on year against the same period last year Not disclosed, Indicator name Number of municipalities served / Value 1,733 Municipalities (as of 30 April 2025) / Year on year against the same period last year Not disclosed, Indicator name Number of regional financial institutions partnered with the SBI Group / Value 91 Financial institution / Year on year against the same period last year Not disclosed, Indicator name Number of corporate customers / Value 1,636 companies / Year on year against the same period last year Not disclosed
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2030 / Revenue 70,000 / Operating profit 18,000 / Profit for the period attributable to owners of the parent 11,000 / EPS 168 / ROE 16.5% / Dividend per share ¥36.7
Financial targetsOperating profit margin Actual results for the fiscal year ending March 2026 21.2% / Target for the fiscal year ending March 2030 25.7% / ROE Actual results for the fiscal year ending March 2026 15.8% / Target for the fiscal year ending March 2030 16.5% / Net debt/EBITDA ratio Net debt/EBITDA: 0.2x (fiscal year ending March 2026) / Net debt/equity Net debt/equity: 6% (fiscal year ending March 2026) / Risk assets/equity Risk assets/equity: 81% (fiscal year ending March 2026)
Annual DividendAnnual dividend per share ¥23.0 for the fiscal year ending March 2026, ¥26.0 forecast for the fiscal year ending March 2027, and ¥36.7 forecast for the fiscal year ending March 2030 / Interim and Year-End Breakdown Not disclosed
Payout ratioFloor of 15%; 24% at an ROE of 15% (based on a DOE of 3.6%)
Acquisition of treasury sharesAmount under the acquisition limit ¥5 billion / Number of Shares Not disclosed / Period Not disclosed
Capital expenditures¥6,000 million (4-year cumulative)
Market Size / ShareMarket Domestic DX market / Value ¥5,275.9 billion in fiscal 2024 and ¥9,266.6 billion in fiscal 2030, Market Cybersecurity Market / Value ¥652.6 billion in fiscal 2023 and ¥959.9 billion in fiscal 2029, Market Hometown Tax Donations / Value Approximately ¥1.2 trillion currently; potential donation deduction market of ¥2.7 trillion, Market International visitors to Japan / Value 36.87 million in 2024; target of 60.00 million in 2030, Market Furusato Choice's share of contracted municipalities / Value 1,733 municipalities, more than 95% of all municipalities
New initiativesWAmazing株式会社 plans to spin off its 2 tourism-related businesses and establish a joint venture (targeting Q2), Full-scale entry into the inbound promotion business, Reduce the M&A budget from ¥30.0 billion to ¥13.0 billion and prioritize organic growth and alliances, Set a ¥5.0 billion share buyback authorization, Subject to approval at the ordinary general meeting of shareholders to be held in June 2025, transition to a company with an Audit and Supervisory Committee
Items this document does not state (14)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookOrders 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.

This reflects operating income of ¥11.2 billion for the fiscal year ending March 2026, below the ¥14.0 billion forecast, as well as current business progress. Targets for the fundbook business will be lowered based on PMI progress, while targets for the hometown tax payment business and central government consulting business will be raised.

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.
Revised Medium-Term Management Plan Digitize & Digitalize Japan (Phase 3) (Fiscal Years Ending March 2026–March 2030) | CHANGE Holdings,Inc. (3962) timely disclosure | Komori