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Management planning4430TOKAI SOFT CO.,LTD.Information and Communications, Services and Others

Notice Regarding the Formulation of the Medium-Term Management Plan (Fiscal Years Ending May 2027 to May 2029)

The company has formulated a new medium-term management plan, “VISION2029,” covering FY2027/5 through FY2029/5. It will prioritize growth investments, including investments in AI and human capital, and aims to achieve net sales of at least ¥15 billion, an operating margin of at least 10%, and ROE of at least 12% in FY2029/5.

Worth reading
52Recurring
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
150
¥100 million (FY2029/5 net sales target: at least ¥15 billion)
Wording
Avoiding a definitive answer
How definitive the wording is.

Items stated in the management plan

Formulated
VISION2029: Strategic Investment for Sustainable Growth in the Age of AIPlan period Fiscal years ending May 2027 through May 2029
Publication date 27 August 2026
Net Sales+20.1%
基準 12,490Target15,000Millions of yen
Operating profit+10.7%
基準 1,355Target1,500Millions of yen
Operating profit margin-16.0pt
基準 26Target10%
ROE-14.0pt
基準 26Target12%

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.

Investment amount by sectorField Human Capital / Details Improving salary levels, strengthening recruitment, and education and training / Amount Not disclosed, Field AI investment / Details Improving development productivity and advancing solutions / Amount Not disclosed, Field Technology Development / Details Existing businesses and future growth areas / Amount Not disclosed, Field Business Platform / Details Enhancing business infrastructure and improving the work environment / Amount Not disclosed, Field Strategic investment in inorganic growth / Details M&A and business and capital alliances / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyThe basic policy is progressive dividends, with a target of a consolidated dividend payout ratio of at least 40% in FY2029/5, the final year of the medium-term management plan.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 policyThe company will consider and implement share repurchases flexibly, taking into comprehensive consideration the share price level, investment opportunities, financial condition, capital efficiency and other factors.
Self-assessment of PBR and share priceThe company aims to improve its PBR and enhance corporate value. The graph shows PBR levels of 1.0x and 1.2x, but does not explicitly assess the level as low.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Business Growth Strategy
02Leveraging AI and strengthening business competitiveness
03Human Capital Management
Plan assumptionsRapid advancement of generative AI, Growing demand for DX, Growing demand from customers, particularly in the manufacturing sector, for digitalization and greater sophistication, Shortage of highly specialized personnel and intensifying competition to recruit talent, Building a stable earnings base in a highly uncertain environment
Segment targetSegment Embedded systems-related business (product development domain) / Sales target 25–30% of FY29/5 sales / Profit Target Not disclosed, Segment Manufacturing, distribution and business systems-related business (manufacturing DX domain) / Sales target 40–50% of FY29/5 sales / Profit Target Not disclosed, Segment Financial and public sector-related business (public services and social infrastructure domain) / Sales target 25–30% of FY29/5 sales / Profit Target Not disclosed
Risks identified by the company
Actual results and performance may differ from forecasts and assumptions due to known and unknown risks and various other factors
Changes in the business structure caused by AI and the increasing sophistication and complexity of development
Shortage of highly specialized personnel and intensifying competition to recruit talent
A highly uncertain environment
Items stated in the management plan
ItemDetails
Plan nameVISION2029: Strategic Investment for Sustainable Growth in the Age of AI
Plan periodFiscal years ending May 2027 through May 2029
Progress against the planFormulated
Sales Target12,490 (FY27/5 forecast) → At least 15,000 (at least ¥15 billion)(Approximately 20.1% or more)
Operating profit target1,355 (FY27/5 forecast) → At least 1,500(Approximately 10.7% or more)
Operating profit margin target11.2 (FY26/5 actual) → 10 or more
ROE target14.9 (FY26/5 actual) → At least 12%
Payout ratio / DOE policyThe basic policy is progressive dividends, with a target of a consolidated dividend payout ratio of at least 40% in FY2029/5, the final year of the medium-term management plan.
Treasury share acquisition policyThe company will consider and implement share repurchases flexibly, taking into comprehensive consideration the share price level, investment opportunities, financial condition, capital efficiency and other factors.
Self-assessment of PBR and share priceThe company aims to improve its PBR and enhance corporate value. The graph shows PBR levels of 1.0x and 1.2x, but does not explicitly assess the level as low.
Investment amount by sectorField Human Capital / Details Improving salary levels, strengthening recruitment, and education and training / Amount Not disclosed, Field AI investment / Details Improving development productivity and advancing solutions / Amount Not disclosed, Field Technology Development / Details Existing businesses and future growth areas / Amount Not disclosed, Field Business Platform / Details Enhancing business infrastructure and improving the work environment / Amount Not disclosed, Field Strategic investment in inorganic growth / Details M&A and business and capital alliances / Amount Not disclosed
Segment targetSegment Embedded systems-related business (product development domain) / Sales target 25–30% of FY29/5 sales / Profit Target Not disclosed, Segment Manufacturing, distribution and business systems-related business (manufacturing DX domain) / Sales target 40–50% of FY29/5 sales / Profit Target Not disclosed, Segment Financial and public sector-related business (public services and social infrastructure domain) / Sales target 25–30% of FY29/5 sales / Profit Target Not disclosed
Plan assumptionsRapid advancement of generative AI, Growing demand for DX, Growing demand from customers, particularly in the manufacturing sector, for digitalization and greater sophistication, Shortage of highly specialized personnel and intensifying competition to recruit talent, Building a stable earnings base in a highly uncertain environment
Key initiativesBusiness Growth Strategy, Leveraging AI and strengthening business competitiveness, Human Capital Management
Risks identifiedActual results and performance may differ from forecasts and assumptions due to known and unknown risks and various other factors, Changes in the business structure caused by AI and the increasing sophistication and complexity of development, Shortage of highly specialized personnel and intensifying competition to recruit talent, A highly uncertain environment
Publication date27 August 2026
Items this document does not state (9)
Net income targetROIC targetCost of capitalTotal investment planNon-financial targetsResults under the previous planReason for revision or withdrawalSize of the Target MarketDate 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.

The business environment is changing rapidly due to the advancement of generative AI and growing demand for DX, while customers’ needs for digitalization and greater sophistication are expanding, creating demand for more advanced technical capabilities and business knowledge than before to solve their issues.

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.
Notice Regarding the Formulation of the Medium-Term Management Plan (Fiscal Years Ending May 2027 to May 2029) | TOKAI SOFT CO.,LTD. (4430) timely disclosure | Komori