Worth reading
75Important
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
-170
¥100 million (M&A and growth investment allocation)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Partially revisedNet Sales+32.5%
基準 52,827Target70,000million
Operating profit+60.4%
基準 11,225Target18,000million
Operating profit margin+4.0pt
基準 2,026Target2,030%
Net income for the current fiscal year+58.6%
基準 6,937Target11,000million
ROE+4.0pt
基準 2,026Target2,030%
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).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
Total investment plan¥19 billion (¥6 billion in capital expenditure and ¥13 billion in M&A and growth investment)
Investment amount by sectorField Capital Expenditure / Amount 60 Hundreds of millions of yen, Field M&A and growth investment / Amount 130 Hundreds of millions of yen
Statements about the use of capital
Payout ratio / DOE policyDividends are planned based on a DOE of 3.6%. The minimum dividend payout ratio is 15%. At an ROE of 15%, the dividend payout ratio would be 24%. This policy applies during the DJ3 plan period.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyA ¥5 billion share buyback allocation has been established. The timing and conditions of the buyback are not disclosed.
Cost of capitalThe cost of equity is estimated at approximately 13%. The CAPM-based estimate is 12.1–14.5%.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 company considers its share price to be undervalued. It analyzed that the expected growth rate implied in the share price at the end of March 2026 had fallen to approximately zero. The PBR has not been disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Implement business monitoring and portfolio management with awareness of capital efficiency
02Reviewing the capital allocation policy
03Using financial leverage in a disciplined manner
04Reducing earnings volatility by strengthening budget-versus-actuals management
05Enhancing information disclosure to reduce information asymmetry
06Building market expectations for future growth by strengthening IR
07Strengthening IR activities to increase the proportion of institutional investors among shareholders
Plan assumptionsThe domestic DX market is expected to grow 1.8-fold, from ¥5,275.9 billion in fiscal 2024 to ¥9,266.6 billion in fiscal 2030 (Fuji Chimera Research Institute)., The cybersecurity market is expected to grow 1.5-fold, from ¥652.6 billion in fiscal 2023 to ¥959.9 billion in fiscal 2029 (Fuji Chimera Research Institute)., Furusato tax donations currently total approximately ¥1.2 trillion, compared with a potential donation deduction amount of ¥2.7 trillion, indicating more than ¥1 trillion of room for expansion (White Paper on Local Public Finance, 2025 edition, and other sources)., The number of visitors to Japan is targeted to increase from 36.87 million in 2024 to 60 million in 2030 (JNTO and the Government of Japan)., Through the fiscal year ending March 2030, revenue CAGR is projected at 12.1% for public-sector DX, 6.3% for regional revitalization, 6.9% for cybersecurity, and 6.9% for private-sector DX and M&A advisory services.
Segment targetSegment NEW-IT Transformation / Net Sales ¥31,166 million / Operating profit ¥5,391 million / Operating profit margin 17.3% / Target fiscal year Fiscal year ending March 2030, Segment Public Tech / Net Sales ¥39,767 million / Operating profit ¥16,005 million / Operating profit margin 40.2% / Target fiscal year Fiscal year ending March 2030
Size of the Target MarketMarket Domestic DX market / Scale ¥5,275.9 billion in fiscal 2024 and ¥9,266.6 billion in fiscal 2030 / Growth rate 1.8x / Source Fuji Chimera Research Institute, “2025 Future Outlook for the Digital Transformation Market: Market Edition”, Market Cybersecurity / Scale ¥652.6 billion in fiscal 2023 and ¥959.9 billion in fiscal 2029 / Growth rate 1.5x / Source Fuji Chimera Research Institute, 2024 published report, “Comprehensive Survey of the Network Security Business: Market Edition”, Market Potential target companies for M&A advisory services / Scale Approximately 1.27 million companies without identified successors, including approximately 600,000 companies at risk of profitable liquidation / Growth rate Not disclosed / Source Small and Medium Enterprise Agency, “Comprehensive Package for Supporting Third-Party Succession”, Market Hometown Tax Donations / Scale Approximately ¥1.2 trillion currently; potential donation deduction market of ¥2.7 trillion / Growth rate More than ¥1 trillion of room for expansion / Source White Paper on Local Public Finance, 2025 edition; Municipal Tax Division, Local Tax Bureau, “Survey Results on the Current Status of Furusato Tax Donations”, Market Inbound Tourism / Scale 36.87 million visitors in 2024 and 60 million in 2030 / Growth rate Not disclosed / Source Japan National Tourism Organization (JNTO), “Japan Tourism Statistics”
Risks identified by the company
Slower earnings growth due to tighter regulation of the furusato tax donation business
Various risks
Social conditions
Earnings fluctuations caused by uncertainty in economic conditions and other factors
Reason for revision or withdrawal
The company is prioritizing accelerating growth in existing businesses and shareholder returns, including share buybacks, over M&A. It plans to improve the profitability of NEW-ITトランスフォーメーション. In light of progress on PMI, it has lowered fundbook's growth targets and plans to improve profit margins by completing PPA amortization and strengthening profitability management in existing businesses.
| Item | Details |
|---|---|
| Plan name | DJ3 |
| Plan period | Fiscal years ending March 2026 to March 2030 (four-year CAGR) |
| Progress against the plan | Partially revised |
| Sales Target | Actual for the fiscal year ending March 2026: 52,827 → Target for the fiscal year ending March 2030: 70,000（+7.3% (four-year CAGR)） |
| Operating profit target | Actual for the fiscal year ending March 2026: 11,225 → Target for the fiscal year ending March 2030: 18,000（+12.5% (four-year CAGR)） |
| Operating profit margin target | Actual for the fiscal year ending March 2026: 21.2 → Target for the fiscal year ending March 2030: 25.7 |
| Net income target | Actual for the fiscal year ending March 2026: 6,937 → Target for the fiscal year ending March 2030: 11,000（+12.2% (four-year CAGR)） |
| ROE target | Actual for the fiscal year ending March 2026: 15.8 → Target for the fiscal year ending March 2030: 16.5 |
| Payout ratio / DOE policy | Dividends are planned based on a DOE of 3.6%. The minimum dividend payout ratio is 15%. At an ROE of 15%, the dividend payout ratio would be 24%. This policy applies during the DJ3 plan period. |
| Treasury share acquisition policy | A ¥5 billion share buyback allocation has been established. The timing and conditions of the buyback are not disclosed. |
| Cost of capital | The cost of equity is estimated at approximately 13%. The CAPM-based estimate is 12.1–14.5%. |
| Self-assessment of PBR and share price | The company considers its share price to be undervalued. It analyzed that the expected growth rate implied in the share price at the end of March 2026 had fallen to approximately zero. The PBR has not been disclosed. |
| Total investment plan | ¥19 billion (¥6 billion in capital expenditure and ¥13 billion in M&A and growth investment) |
| Investment amount by sector | Field Capital Expenditure / Amount 60 Hundreds of millions of yen, Field M&A and growth investment / Amount 130 Hundreds of millions of yen |
| Segment target | Segment NEW-IT Transformation / Net Sales ¥31,166 million / Operating profit ¥5,391 million / Operating profit margin 17.3% / Target fiscal year Fiscal year ending March 2030, Segment Public Tech / Net Sales ¥39,767 million / Operating profit ¥16,005 million / Operating profit margin 40.2% / Target fiscal year Fiscal year ending March 2030 |
| Plan assumptions | The domestic DX market is expected to grow 1.8-fold, from ¥5,275.9 billion in fiscal 2024 to ¥9,266.6 billion in fiscal 2030 (Fuji Chimera Research Institute)., The cybersecurity market is expected to grow 1.5-fold, from ¥652.6 billion in fiscal 2023 to ¥959.9 billion in fiscal 2029 (Fuji Chimera Research Institute)., Furusato tax donations currently total approximately ¥1.2 trillion, compared with a potential donation deduction amount of ¥2.7 trillion, indicating more than ¥1 trillion of room for expansion (White Paper on Local Public Finance, 2025 edition, and other sources)., The number of visitors to Japan is targeted to increase from 36.87 million in 2024 to 60 million in 2030 (JNTO and the Government of Japan)., Through the fiscal year ending March 2030, revenue CAGR is projected at 12.1% for public-sector DX, 6.3% for regional revitalization, 6.9% for cybersecurity, and 6.9% for private-sector DX and M&A advisory services. |
| Key initiatives | Implement business monitoring and portfolio management with awareness of capital efficiency, Reviewing the capital allocation policy, Using financial leverage in a disciplined manner, Reducing earnings volatility by strengthening budget-versus-actuals management, Enhancing information disclosure to reduce information asymmetry, Building market expectations for future growth by strengthening IR, Strengthening IR activities to increase the proportion of institutional investors among shareholders |
| Reason for revision or withdrawal | The company is prioritizing accelerating growth in existing businesses and shareholder returns, including share buybacks, over M&A. It plans to improve the profitability of NEW-ITトランスフォーメーション. In light of progress on PMI, it has lowered fundbook's growth targets and plans to improve profit margins by completing PPA amortization and strengthening profitability management in existing businesses. |
| Size of the Target Market | Market Domestic DX market / Scale ¥5,275.9 billion in fiscal 2024 and ¥9,266.6 billion in fiscal 2030 / Growth rate 1.8x / Source Fuji Chimera Research Institute, “2025 Future Outlook for the Digital Transformation Market: Market Edition”, Market Cybersecurity / Scale ¥652.6 billion in fiscal 2023 and ¥959.9 billion in fiscal 2029 / Growth rate 1.5x / Source Fuji Chimera Research Institute, 2024 published report, “Comprehensive Survey of the Network Security Business: Market Edition”, Market Potential target companies for M&A advisory services / Scale Approximately 1.27 million companies without identified successors, including approximately 600,000 companies at risk of profitable liquidation / Growth rate Not disclosed / Source Small and Medium Enterprise Agency, “Comprehensive Package for Supporting Third-Party Succession”, Market Hometown Tax Donations / Scale Approximately ¥1.2 trillion currently; potential donation deduction market of ¥2.7 trillion / Growth rate More than ¥1 trillion of room for expansion / Source White Paper on Local Public Finance, 2025 edition; Municipal Tax Division, Local Tax Bureau, “Survey Results on the Current Status of Furusato Tax Donations”, Market Inbound Tourism / Scale 36.87 million visitors in 2024 and 60 million in 2030 / Growth rate Not disclosed / Source Japan National Tourism Organization (JNTO), “Japan Tourism Statistics” |
| Risks identified | Slower earnings growth due to tighter regulation of the furusato tax donation business, Various risks, Social conditions, Earnings fluctuations caused by uncertainty in economic conditions and other factors |
| Publication date | 26 June 2026 |
Items this document does not state (4)
ROIC targetNon-financial targetsResults under the previous planDate 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.To prioritize accelerating growth in existing businesses and shareholder returns, including share buybacks, over M&A. The company aims to improve the profitability of NEW-ITトランスフォーメーション and reliably achieve operating profit of ¥18 billion. It also plans to lower its growth targets for fundbook in light of progress on PMI and improve profit margins by completing PPA amortization and strengthening profitability management in existing businesses.
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