Komori
Earnings presentation6200Insource Co.,Ltd.Information and Communications, Services and Others

Notice Concerning the Formulation of the Medium-Term Management Plan: Road to Next 2029

The company formulated the medium-term management plan "Road to Next 2029," covering the 3-year period from the fiscal year ending September 2027 through the fiscal year ending September 2029. It is targeting revenue of ¥21.0 billion, operating profit of ¥9.5 billion and an operating margin of 45.2% for the fiscal year ending September 2029, while focusing on priority customer segments, improving its product mix, scaling back unprofitable businesses and expanding its generative AI business.

Worth reading
69In 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
9500
¥ million (operating profit target for the fiscal year ending September 2029)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Medium-Term Management Plan PresentationFrom the fiscal year ending September 2027 through the fiscal year ending September 2029 (actual results for the fiscal year ended September 2026 are also shown for reference)11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥15,556 million+7.2%
Operating profit¥6,161 million+3.1%
Ordinary income¥6,226 million+3.8%
Net income¥4,374 million+5.9%
Selling, general and administrative expenses¥5,725 million
Gross Profit Margin
Rate76.4%
Year-on-year change (points)▲0.5pt
Operating profit margin
Rate39.6%
Year-on-year change (points)▲1.6pt
Results for the three months of the current quarter
Net Sales¥3,974 million (up 2.6% year on year)
Gross profit¥3,049 million (up 2.1% year on year)
Operating profit¥1,713 million (up 1.6% year on year)
Net income for the current fiscal year¥1,297 million (up 5.2% year on year)
Full-year earnings forecast
Fiscal year ending September 2027
Net Sales¥17,110 million
Gross profit¥13,180 million
Selling, general and administrative expenses¥6,330 million
Operating profit¥6,850 million
Ordinary income¥6,850 million
Net income for the current fiscal year¥4,800 million
Fiscal year ending September 2028
Net Sales¥18,900 million
Operating profit¥7,900 million
Ordinary income¥7,900 million
Net income for the current fiscal year¥5,500 million
Fiscal year ending September 2029
Net Sales¥21,000 million
Operating profit¥9,500 million
Ordinary income¥9,500 million
Net income for the current fiscal year¥6,500 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Sales GrowthApproximately ¥300 million
  • Margin improvement and higher unit pricesApproximately ¥200 million
  • Scaling back unprofitable businessesApproximately ¥190 million
New initiatives
  • IDA and ICO were integrated to establish Insource Consulting & Digital (ICD)
  • Changed to profitability management based on profit targets for each customer segment and PPL
  • Expand generative AI training for MM and GB through low-priced open-enrollment courses and other offerings
  • Expand the number of companies adopting AI BOAT and enhance its educational platform functionality
  • Scale back unprofitable businesses, including the recruitment business and regional revitalization business
  • Integrate the integrated HRM solution with the LMS through a business alliance with Kinjiro Co.,Ltd.
Key KPIsA metric the company considers important as a management benchmark.
  • Number of new instructor-led training content offerings363 Number of designs
    Year on year against the same period last year100.5% year on year
  • Number of new open-enrollment course content offerings514 Number of designs
    Year on year against the same period last year96.7% year on year
  • Number of new video and e-learning content offerings260 Number of designs
    Year on year against the same period last year94.2% year on year
  • Number of inquiries6,696 Engagements
    Year on year against the same period last year108.2% year on year
  • New organizations registered with WEBinsource2,721 organizations
    Year on year against the same period last year106.3% year on year
  • Organizations paying for Leaf936 organizations
    Year on year against the same period last year+8.8%
  • Active users5,523 thousand people
    Year on year against the same period last year+10.1%
  • Companies using the AI BOAT trialMore than 400 companies
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of instructor-dispatched training sessions delivered25,485 times
    Year on year against the same period last year+3.4%
  • Average unit price for instructor-dispatched training¥295.5 thousand
    Year on year against the same period last year+5.4%
  • Number of public course participants162,499 people
    Year on year against the same period last year+2.0%
  • Number of participants per open-enrollment course session8.7 people
    Year on year against the same period last year▲12.8%
  • Average unit price for public courses¥23.6 thousand
    Year on year against the same period last year+5.3%
  • Average revenue across all customer segments¥1,093 thousand
    Year on year against the same period last year+4.3%
Segment results
EB
Net Sales¥3,813 million (down 2.8% year on year)
Operating profit¥1,583 million (down 6.4% year on year)
MM
Net Sales¥5,427 million (up 11.2% year on year)
Operating profit¥2,207 million (up 6.7% year on year)
GB
Net Sales¥3,241 million (up 12.7% year on year)
Operating profit¥1,302 million (up 8.8% year on year)
Government agencies
Net Sales¥3,074 million (up 8.5% year on year)
Operating profit¥1,068 million (up 4.5% year on year)
Medium-term management plan targets
Fiscal year ending September 2027
Net Sales¥17,110 million
Operating profit¥6,850 million
Net income for the current fiscal year¥4,800 million
Fiscal year ending September 2028
Net Sales¥18,900 million
Operating profit¥7,900 million
Net income for the current fiscal year¥5,500 million
Fiscal year ending September 2029
Net Sales¥21,000 million
Operating profit¥9,500 million
Net income for the current fiscal year¥6,500 million
Operating profit margin45.2%
Comparison with actual resultsActual results for the fiscal year ended September 2026: revenue of ¥15,556 million and operating profit of ¥6,161 million
Financial targets
Payout ratio50%
DOE18%
Number of employees
Number of Employees314 sales personnel (at period-end)
Change during the period+8 people
Annual Dividend
Fiscal year ending September 2027¥36.0 (full-year forecast)
Payout ratio
61% forecast for the fiscal year ending September 2027, 50% target (DOE 18%)
Acquisition of treasury shares
Acquisition amount¥2 billion
Number of shares acquired2.69 million shares
PeriodActual results for the fiscal year ended September 2026. Acquisition period: Not disclosed
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Fiscal Period CoveredFrom the fiscal year ending September 2027 through the fiscal year ending September 2029 (actual results for the fiscal year ended September 2026 are also shown for reference)
Net Sales¥15,556 million (YoY +7.2%)
Operating profit¥6,161 million (YoY +3.1%)
Ordinary income¥6,226 million (YoY +3.8%)
Net income¥4,374 million (YoY +5.9%)
Gross Profit MarginRate 76.4% / Year-on-year change (points) ▲0.5pt
Operating profit marginRate 39.6% / Year-on-year change (points) ▲1.6pt
Selling, general and administrative expenses¥5,725 million
Results for the three months of the current quarterNet Sales ¥3,974 million (up 2.6% year on year) / Gross profit ¥3,049 million (up 2.1% year on year) / Operating profit ¥1,713 million (up 1.6% year on year) / Net income for the current fiscal year ¥1,297 million (up 5.2% year on year)
Full-year earnings forecastFiscal year ending September 2027 Net Sales ¥17,110 million / Gross profit ¥13,180 million / Selling, general and administrative expenses ¥6,330 million / Operating profit ¥6,850 million / Ordinary income ¥6,850 million / Net income for the current fiscal year ¥4,800 million / Fiscal year ending September 2028 Net Sales ¥18,900 million / Operating profit ¥7,900 million / Ordinary income ¥7,900 million / Net income for the current fiscal year ¥5,500 million / Fiscal year ending September 2029 Net Sales ¥21,000 million / Operating profit ¥9,500 million / Ordinary income ¥9,500 million / Net income for the current fiscal year ¥6,500 million
Segment resultsEB Net Sales ¥3,813 million (down 2.8% year on year) / Operating profit ¥1,583 million (down 6.4% year on year) / MM Net Sales ¥5,427 million (up 11.2% year on year) / Operating profit ¥2,207 million (up 6.7% year on year) / GB Net Sales ¥3,241 million (up 12.7% year on year) / Operating profit ¥1,302 million (up 8.8% year on year) / Government agencies Net Sales ¥3,074 million (up 8.5% year on year) / Operating profit ¥1,068 million (up 4.5% year on year)
Breakdown of Factors Affecting the ChangeFactors Sales Growth / Amount Approximately ¥300 million, Factors Margin improvement and higher unit prices / Amount Approximately ¥200 million, Factors Scaling back unprofitable businesses / Amount Approximately ¥190 million
Key KPIsIndicator name Number of new instructor-led training content offerings / Value 363 Number of designs / Year on year against the same period last year 100.5% year on year, Indicator name Number of new open-enrollment course content offerings / Value 514 Number of designs / Year on year against the same period last year 96.7% year on year, Indicator name Number of new video and e-learning content offerings / Value 260 Number of designs / Year on year against the same period last year 94.2% year on year, Indicator name Number of inquiries / Value 6,696 Engagements / Year on year against the same period last year 108.2% year on year, Indicator name New organizations registered with WEBinsource / Value 2,721 organizations / Year on year against the same period last year 106.3% year on year, Indicator name Organizations paying for Leaf / Value 936 organizations / Year on year against the same period last year +8.8%, Indicator name Active users / Value 5,523 thousand people / Year on year against the same period last year +10.1%, Indicator name Companies using the AI BOAT trial / Value More than 400 companies / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Number of instructor-dispatched training sessions delivered / Value 25,485 times / Year on year against the same period last year +3.4%, Indicator name Average unit price for instructor-dispatched training / Value ¥295.5 thousand / Year on year against the same period last year +5.4%, Indicator name Number of public course participants / Value 162,499 people / Year on year against the same period last year +2.0%, Indicator name Number of participants per open-enrollment course session / Value 8.7 people / Year on year against the same period last year ▲12.8%, Indicator name Average unit price for public courses / Value ¥23.6 thousand / Year on year against the same period last year +5.3%, Indicator name Average revenue across all customer segments / Value ¥1,093 thousand / Year on year against the same period last year +4.3%
Number of employeesNumber of Employees 314 sales personnel (at period-end) / Change during the period +8 people / Hiring plan Not disclosed
Medium-term management plan targetsFiscal year ending September 2027 Net Sales ¥17,110 million / Operating profit ¥6,850 million / Net income for the current fiscal year ¥4,800 million / Fiscal year ending September 2028 Net Sales ¥18,900 million / Operating profit ¥7,900 million / Net income for the current fiscal year ¥5,500 million / Fiscal year ending September 2029 Net Sales ¥21,000 million / Operating profit ¥9,500 million / Net income for the current fiscal year ¥6,500 million / Operating profit margin 45.2% / Comparison with actual results Actual results for the fiscal year ended September 2026: revenue of ¥15,556 million and operating profit of ¥6,161 million
Financial targetsPayout ratio 50% / DOE 18%
Annual DividendFiscal year ending September 2027 ¥36.0 (full-year forecast) / Interim and Year-End Breakdown Not disclosed
Payout ratio61% forecast for the fiscal year ending September 2027, 50% target (DOE 18%)
Acquisition of treasury sharesAcquisition amount ¥2 billion / Number of shares acquired 2.69 million shares / Period Actual results for the fiscal year ended September 2026. Acquisition period: Not disclosed
New initiativesIDA and ICO were integrated to establish Insource Consulting & Digital (ICD), Changed to profitability management based on profit targets for each customer segment and PPL, Expand generative AI training for MM and GB through low-priced open-enrollment courses and other offerings, Expand the number of companies adopting AI BOAT and enhance its educational platform functionality, Scale back unprofitable businesses, including the recruitment business and regional revitalization business, Integrate the integrated HRM solution with the LMS through a business alliance with Kinjiro Co.,Ltd.
Items this document does not state (9)
Progress against full-year forecastSelf-assessment against the planNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogMarket Size / ShareKey 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.

The company plans to improve growth and profitability by allocating sales resources more heavily to MM and GB, increasing value-added offerings for EB, changing to customer-level profit management, strengthening sales of high-margin products, scaling back unprofitable businesses, and expanding generative AI training and AI BOAT.

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Notice Concerning the Formulation of the Medium-Term Management Plan: Road to Next 2029 | Insource Co.,Ltd. (6200) timely disclosure | Komori