Worth reading
68In focus
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
400
¥ millionWording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.5%
基準 2,025Target2,035million
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. The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
Operating profit marginNot disclosed → 10% (FY2035 target)
Only the target level is shown because the current level for comparison was not provided.Operating profit targetNot disclosed → not disclosed (only the operating margin target was disclosed)
ROE targetNot disclosed → Numerical target not disclosed (the Company aims to achieve ROE above its cost of capital)ROE is the percentage of profit generated from money provided by shareholders.
Investment amount by sectorField Nursing care business (expanding market) / Investment amount Not disclosed, Field Japanese-language education business (high growth potential) / Investment amount Not disclosed, Field After-school childcare (strong demand) / Investment amount Not disclosed, Field DX implementation / Investment amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyThe Company targets a consolidated payout ratio of 30% and will maintain a minimum annual dividend of ¥5. Target period: not disclosedThe payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalnot disclosed (the policy states qualitatively that the Company will seek returns at or above its cost of capital and ROE above its cost of capital)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 recognizes that the market currently values it at a PBR below 1x and aims to exceed a PBR of 1x at an early datePBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Optimization of the store-opening portfolio
02Accelerate the rollout of high-value-added services for high school students by capitalizing on the tailwind from tuition-free education
03Lead market restructuring associated with the introduction of accreditation systems and capture market share
04Accelerate global expansion and expand an in-house recruitment infrastructure
05Expand services across generations as a company that supports people throughout their lives
06Improve profitability through technology adoption and DX
07[Shareholder focus] Substantial dividend increases reflecting earnings growth
08[Protection of shareholder value] Strong downside support
09Platform for advancing the DX strategy and developing digital talent
Plan assumptionsThe population aged 0–14 has declined by approximately 16% over the past 10 years, The number of foreign residents is expected to reach approximately 4.12 million by the end of 2025, The number of international students is expected to reach 400,000 by 2033, Rapid decline in the birthrate and population aging, Policies to expand the acceptance of foreign workers, Progressive population aging and growing demand for longer healthy lifespans
Segment targetSegment Cram-school business / FY2035 net sales target ¥10.7 billion / Revenue mix 26％ / Operating profit margin target 22％ / Medium- to long-term growth drivers Complete structural reforms and return to growth through higher value-added services, Segment Language-related business / FY2035 net sales target ¥7 billion / Revenue mix 17％ / Operating profit margin target 16％ / Medium- to long-term growth drivers Build an overwhelming market share, expand globally, and promote personnel exchanges, Segment Childcare and nursing-care business / FY2035 net sales target ¥22 billion / Revenue mix 54％ / Operating profit margin target 8％ / Medium- to long-term growth drivers Expand the value provided through lifelong support and strengthen the earnings base through DX
Risks identified by the company
Declining birthrate and a substantial decrease in the target population
Declining customer acquisition capabilities in legacy dominant regions
Brand recognition and ability to expand outside specific dominant areas
Consumer polarization and a decline in the rate of attendance at cram schools resulting from higher education costs
Organizational burden associated with transitioning to accredited Japanese-language educational institutions
Tightening regulations governing educational institutions and substantially stricter accreditation standards
Changes in the systems of individual countries, including immigration control, visa issuance policies, and travel restrictions
Inefficiencies from operating multiple companies in the same business following M&A
Persistent labor shortages and continued increases in labor costs
Stricter requirements for the use of ICT and robots resulting from revisions to nursing care fees
The possibility that actual results may differ from forecasts due to various factors going forward
Reason for revision or withdrawal
not disclosed (this is a newly formulated policy, not a revision or withdrawal)
| Item | Details |
|---|---|
| Plan name | Medium- to Long-Term Management Policy (Desired Position in 2035) |
| Plan period | July 2026 (Phase 1) to FY2035 (Next Phase) |
| Progress against the plan | Formulated |
| Sales Target | ¥26.455 billion (actual for the fiscal year ended May 2025, 12 months) → ¥40 billion (FY2035 target) |
| Operating profit target | Not disclosed → not disclosed (only the operating margin target was disclosed) |
| Operating profit margin target | Not disclosed → 10% (FY2035 target) |
| ROE target | Not disclosed → Numerical target not disclosed (the Company aims to achieve ROE above its cost of capital) |
| Payout ratio / DOE policy | The Company targets a consolidated payout ratio of 30% and will maintain a minimum annual dividend of ¥5. Target period: not disclosed |
| Cost of capital | not disclosed (the policy states qualitatively that the Company will seek returns at or above its cost of capital and ROE above its cost of capital) |
| Self-assessment of PBR and share price | The Company recognizes that the market currently values it at a PBR below 1x and aims to exceed a PBR of 1x at an early date |
| Investment amount by sector | Field Nursing care business (expanding market) / Investment amount Not disclosed, Field Japanese-language education business (high growth potential) / Investment amount Not disclosed, Field After-school childcare (strong demand) / Investment amount Not disclosed, Field DX implementation / Investment amount Not disclosed |
| Segment target | Segment Cram-school business / FY2035 net sales target ¥10.7 billion / Revenue mix 26％ / Operating profit margin target 22％ / Medium- to long-term growth drivers Complete structural reforms and return to growth through higher value-added services, Segment Language-related business / FY2035 net sales target ¥7 billion / Revenue mix 17％ / Operating profit margin target 16％ / Medium- to long-term growth drivers Build an overwhelming market share, expand globally, and promote personnel exchanges, Segment Childcare and nursing-care business / FY2035 net sales target ¥22 billion / Revenue mix 54％ / Operating profit margin target 8％ / Medium- to long-term growth drivers Expand the value provided through lifelong support and strengthen the earnings base through DX |
| Plan assumptions | The population aged 0–14 has declined by approximately 16% over the past 10 years, The number of foreign residents is expected to reach approximately 4.12 million by the end of 2025, The number of international students is expected to reach 400,000 by 2033, Rapid decline in the birthrate and population aging, Policies to expand the acceptance of foreign workers, Progressive population aging and growing demand for longer healthy lifespans |
| Key initiatives | Optimization of the store-opening portfolio, Accelerate the rollout of high-value-added services for high school students by capitalizing on the tailwind from tuition-free education, Lead market restructuring associated with the introduction of accreditation systems and capture market share, Accelerate global expansion and expand an in-house recruitment infrastructure, Expand services across generations as a company that supports people throughout their lives, Improve profitability through technology adoption and DX, [Shareholder focus] Substantial dividend increases reflecting earnings growth, [Protection of shareholder value] Strong downside support, Platform for advancing the DX strategy and developing digital talent |
| Reason for revision or withdrawal | not disclosed (this is a newly formulated policy, not a revision or withdrawal) |
| Risks identified | Declining birthrate and a substantial decrease in the target population, Declining customer acquisition capabilities in legacy dominant regions, Brand recognition and ability to expand outside specific dominant areas, Consumer polarization and a decline in the rate of attendance at cram schools resulting from higher education costs, Organizational burden associated with transitioning to accredited Japanese-language educational institutions, Tightening regulations governing educational institutions and substantially stricter accreditation standards, Changes in the systems of individual countries, including immigration control, visa issuance policies, and travel restrictions, Inefficiencies from operating multiple companies in the same business following M&A, Persistent labor shortages and continued increases in labor costs, Stricter requirements for the use of ICT and robots resulting from revisions to nursing care fees, The possibility that actual results may differ from forecasts due to various factors going forward |
| Publication date | 27 July 2026 |
Items this document does not state (8)
Net income targetROIC targetTreasury share acquisition policyTotal investment planNon-financial targetsResults under the previous planSize 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 issues faced by people and the value they seek are changing as social conditions evolve and Japan's birthrate declines and population ages rapidly. In light of the Company's 50th anniversary, it determined that a medium- to long-term management policy under which the entire Group would take on challenges was necessary, rather than pursuing short-term numerical targets.
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.