Worth reading
85Important
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
12
¥100 million (investment in generative AI testing tool development over 3 years)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+57.5%
基準 10,795Target17,000million
Operating profit+0.1%
基準 2,024Target2,027million
Operating profit margin+3.0pt
基準 2,024Target2,027％
Net income for the current fiscal year+0.1%
基準 2,024Target2,027million
ROE+3.0pt
基準 2,024Target2,027％
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.
What happened to the previous planInitial target of ¥10.0 billion → FY2024 net sales of ¥10.79 billion+20,140.0%Calculated from the two disclosed figures
Total investment plan¥3.7 billion (over 3 years)
Investment amount by sectorField Investment in generative AI testing tool development / Amount ¥1.2 billion (cumulative over 3 years), Field Balance sheet strategy investments (M&A investments, investments to expand business locations, etc.) / Amount ¥2.5 billion (cumulative over 3 years)
Statements about the use of capital
Treasury share acquisition policyAfter considering business performance, the capital position, opportunities for growth investment and market conditions, including the share price, the company will consider flexible share repurchases as a shareholder return measure that contributes to improving capital efficiency when deemed necessary.
Key initiatives
01Generative AI Testing Tool Development Investment Strategy
02Bottleneck Resolution Measures
03Software Testing Strategy
04Tools Strategy
05バルカレ Strategy (Concept and Target State)
06Security Strategy (Concept and Target State)
07Development Business Strategy (Concept and Target State)
Plan assumptionsJapan's software testing market is approximately ¥6.2 trillion., Japan's generative AI market is expected to reach approximately ¥1.7 trillion in 2030, with a CAGR of 47.2%., A shortage of approximately 380,000 IT personnel in Japan is expected in FY2026., Borrowings will be used for approximately 70% of total investment.
Segment targetSegment Software Testing Business / Net Sales ¥14.28 billion (FY2027) / Profit Not disclosed, Segment Development business / Net Sales ¥2.35 billion (FY2027) / Profit Not disclosed, Segment Security Business / Net Sales ¥350 million (FY2027) / Profit Not disclosed
Size of the Target MarketJapan's software testing market is approximately ¥6.2 trillion, based on estimates using the Ministry of Internal Affairs and Communications and Ministry of Economy, Trade and Industry Basic Survey of the Information and Communications Industry, IPA's White Paper on Software Development Data, and the Software Development Data Analysis Collection 2020. Japan's generative AI market is expected to reach approximately ¥1.7 trillion in 2030, with a CAGR of 47.2%.
Risks identified by the company
Shortage of IT personnel in Japan
Risk of software development being replaced by advances in generative AI technology
Business opportunities and risks associated with rising demand for automation through generative AI
Increase in cyberattacks
Reason for revision or withdrawal
With development of TestScape progressing smoothly and implementation within sight, the company shifted its basic policy toward actively investing in generative AI testing tool development in order to maintain its technological lead in generative AI. The Medium-Term Management Plan was revised and rolled forward to improve productivity and strengthen competitive advantages, thereby enabling greater business growth than before despite the current difficulty of recruiting IT personnel.
| Item | Details |
|---|---|
| Plan name | FY2025 New Medium-Term Management Plan |
| Plan period | FY2025-FY2027 |
| Progress against the plan | Formulated |
| Sales Target | 10,795 (FY2024 actual) → 17,000 (FY2027 target) |
| Operating profit target | 940 (FY2024 actual) → 1,890 (FY2027 target) |
| Operating profit margin target | 8.7 (FY2024 actual) → 11.1 (FY2027 target) |
| Net income target | 589 (FY2024 actual; net income attributable to owners of the parent) → 1,202 (FY2027 target; net income attributable to owners of the parent) |
| ROE target | 19.4 (FY2024 actual) → 26.5 (FY2027 target) |
| Treasury share acquisition policy | After considering business performance, the capital position, opportunities for growth investment and market conditions, including the share price, the company will consider flexible share repurchases as a shareholder return measure that contributes to improving capital efficiency when deemed necessary. |
| Total investment plan | ¥3.7 billion (over 3 years) |
| Investment amount by sector | Field Investment in generative AI testing tool development / Amount ¥1.2 billion (cumulative over 3 years), Field Balance sheet strategy investments (M&A investments, investments to expand business locations, etc.) / Amount ¥2.5 billion (cumulative over 3 years) |
| Segment target | Segment Software Testing Business / Net Sales ¥14.28 billion (FY2027) / Profit Not disclosed, Segment Development business / Net Sales ¥2.35 billion (FY2027) / Profit Not disclosed, Segment Security Business / Net Sales ¥350 million (FY2027) / Profit Not disclosed |
| Plan assumptions | Japan's software testing market is approximately ¥6.2 trillion., Japan's generative AI market is expected to reach approximately ¥1.7 trillion in 2030, with a CAGR of 47.2%., A shortage of approximately 380,000 IT personnel in Japan is expected in FY2026., Borrowings will be used for approximately 70% of total investment. |
| Key initiatives | Generative AI Testing Tool Development Investment Strategy, Bottleneck Resolution Measures, Software Testing Strategy, Tools Strategy, バルカレ Strategy (Concept and Target State), Security Strategy (Concept and Target State), Development Business Strategy (Concept and Target State) |
| Results under the previous plan | Initial target of ¥10.0 billion → FY2024 net sales of ¥10.79 billion |
| Reason for revision or withdrawal | With development of TestScape progressing smoothly and implementation within sight, the company shifted its basic policy toward actively investing in generative AI testing tool development in order to maintain its technological lead in generative AI. The Medium-Term Management Plan was revised and rolled forward to improve productivity and strengthen competitive advantages, thereby enabling greater business growth than before despite the current difficulty of recruiting IT personnel. |
| Size of the Target Market | Japan's software testing market is approximately ¥6.2 trillion, based on estimates using the Ministry of Internal Affairs and Communications and Ministry of Economy, Trade and Industry Basic Survey of the Information and Communications Industry, IPA's White Paper on Software Development Data, and the Software Development Data Analysis Collection 2020. Japan's generative AI market is expected to reach approximately ¥1.7 trillion in 2030, with a CAGR of 47.2%. |
| Risks identified | Shortage of IT personnel in Japan, Risk of software development being replaced by advances in generative AI technology, Business opportunities and risks associated with rising demand for automation through generative AI, Increase in cyberattacks |
| Publication date | 30 June 2026 |
Items this document does not state (6)
ROIC targetPayout ratio / DOE policyCost of capitalSelf-assessment of PBR and share priceNon-financial targetsDate 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.With development of TestScape progressing smoothly and implementation within sight, the company shifted its basic policy toward actively investing in generative AI testing tool development in order to maintain its technological lead in generative AI. The company states that this was reflected in the plan to enable business growth through higher productivity and stronger competitive advantages, despite the difficulty of recruiting IT personnel.
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