Sustained, stable growth built on recurring-revenue businesses

「For the current consolidated fiscal year, recurring revenue and various fees increased, resulting in revenue of ¥4.632 billion, up 6.0% year on year.」

「Accumulated recurring revenue from new orders and additional orders from existing customers continued to progress steadily, and recurring revenue, including contract revenue, exceeded plan」

「We will restore recurring-revenue growth to the pre-pandemic rate of 5% annually.」

「Against this backdrop, the Group entered the final year of its 5-year medium-term management plan, “NEXT STANDARD 2025.” While focusing on business expansion through accumulated recurring revenue in its 2 core businesses, the Group is working on the priority themes of “expanding the outsourcing business” and “transforming operations” with the aim of further evolving and developing as an outsourcing provider.」

「For the current consolidated fiscal year, revenue was ¥8.371 billion, up 0.3% year on year. Accumulated recurring revenue fell below plan, but revenue increased due to higher spot fee revenue related to the introduction of the invoice system and other factors.」

「In the corporate housing management business, acquiring new orders from large companies is taking time, but the number of orders from mid-sized companies has gradually increased following the introduction of a new dedicated service. In addition, revenue increased to ¥3.162 billion, up 6.5% year on year, as BPO services for human resources and general affairs departments expanded steadily and spot revenue from support for compliance with the invoice system increased.」

「In the corporate housing management business, inquiries for system-revision consulting increased, particularly among large companies, against a backdrop of reviews of corporate housing systems and operations and strong demand for outsourcing. Among mid-sized companies, the number of orders steadily increased following the introduction of a new dedicated service.」

「Against this backdrop, the Group continues to advance its medium-term management plan, “NEXT STANDARD 2025,” for the fiscal year ending June 2025. For the fiscal year ending June 2024, as the order environment began to recover, the Group further promoted expansion of the outsourcing business and operational transformation through business expansion from accumulated recurring revenue, including new services, and productivity improvements from greater operating efficiency.」

「In expanding the outsourcing business, BPO services for human resources and general affairs departments continued to grow, and the company launched “Shatakusan Lite,” a new corporate housing outsourcing service for mid-sized companies. However, the impact of cancellations and the insourcing of specific operations by some customers in the previous fiscal year remained, and the accumulation of recurring revenue from new orders had not recovered to pre-pandemic levels. In addition, the company actively pursued investment in new service development and digitalization. Revenue was ¥4.065 billion, down 3.0% from the previous fiscal year, and operating profit was ¥1.278 billion, down 9.0%.」

「In expanding the outsourcing business, BPO services for human resources and general affairs departments increased, and the company launched a new corporate housing outsourcing service for mid-sized companies, leading to a recovery trend in new contracts. However, the impact of cancellations and the insourcing of specific operations by some customers in the previous fiscal year remained, while investment costs for new services and digitalization increased. Revenue was ¥2.969 billion, down 4.8% year on year, and operating profit was ¥900 million, down 13.7%.」

「The company has steadily strengthened its sales activities for new contracts, including by launching dedicated services for mid-sized companies. However, the impact of cancellations and the insourcing of specific operations by some customers in the previous fiscal year remained, while investment in digitalization also increased. Revenue was ¥1.905 billion, down 7.3% year on year, and operating profit was ¥591 million, down 19.4%.」

「In the corporate housing management business, inquiries remain strong regarding reviews of corporate housing systems and operations and further outsourcing of related activities. Demand for outsourcing corporate housing-related operations, including BPO services for human resources and general affairs departments, also remains high. The first quarter progressed broadly in line with plan, but revenue was ¥943 million, down 6.8% year on year, and operating profit was ¥296 million, down 16.4%, due to the impact of cancellations and the insourcing of specific operations by some customers in the previous fiscal year, as well as increased investment in digitalization and other areas.」

「In the corporate housing outsourcing service, delays in new contracts were seen due to the impact of the spread of COVID-19. In addition, the number of corporate housing units declined because of business consolidations and early retirements, while some customers cancelled contracts to reduce outsourcing fees or brought specific operations in-house. As a result, contract revenue fell below plan, and revenue was ¥4.191 billion, up 0.8% from the previous fiscal year.」

「Against this backdrop, the Group is advancing its 5-year medium-term management plan from July 2020 to June 2025 to achieve its medium-term vision, “NEXT STANDARD 2025.” For the fiscal year ending June 2022, the Group is focusing on expanding the business by accumulating recurring revenue, including through the recovery of new orders amid the COVID-19 pandemic, while working to maintain and expand its recurring-revenue base.」

「Against this backdrop, the Group is advancing its 5-year medium-term management plan from July 2020 to June 2025 to achieve its medium-term vision, “NEXT STANDARD 2025.” For the fiscal year ending June 2022, the Group is focusing on expanding the business by accumulating recurring revenue, including through the recovery of new orders amid the COVID-19 pandemic, while working to maintain and expand its recurring-revenue base.」

「For the fiscal year ending June 2022, the company will work to maintain and expand recurring revenue while pursuing the recovery of new orders amid the COVID-19 pandemic.」

「Existing contract revenue remained firm, but fee revenue declined during the employee-transfer season in the current fiscal year as some customers restricted transfers due to the COVID-19 pandemic. Revenue was ¥4.158 billion, up 0.3% year on year.」

「In the corporate housing management business, corporate decision-making slowed during the COVID-19 pandemic, delaying new orders for corporate housing outsourcing and cost-reduction services, although interest in outsourcing remains high. During customers' employee-transfer season for the fiscal year ended March 2021, some transfers were also restricted and fee revenue declined. However, existing contract revenue remained firm, resulting in revenue of ¥3.06 billion, up 0.3% year on year.」

「For the 6-month period ended 30 September, revenue from accumulated recurring contracts in the 2 core businesses remained firm, although」

「Although revenue from accumulated recurring contracts has increased in the 2 core businesses」

「Against this backdrop, the Group is implementing the final year of its 5-year medium-term management plan and continues to focus on enhancing corporate value over the medium to long term through 3 basic strategies: continued, stable growth based on a recurring-revenue business; the creation of high-value-added services that further expand value for customers; and faster decision-making and talent development through functional specialization.」

「Against this backdrop, the Group is implementing the final year of its 5-year medium-term management plan and continues to focus on enhancing corporate value over the medium to long term through 3 basic strategies: continued, stable growth based on a recurring-revenue business; the creation of high-value-added services that further expand value for customers; and faster decision-making and talent development through functional specialization.」

「Against this backdrop, the Group is implementing the final year of its 5-year medium-term management plan and continues to focus on enhancing corporate value over the medium to long term through 3 basic strategies: continued, stable growth based on a recurring-revenue business; the creation of high-value-added services that further expand value for customers; and faster decision-making and talent development through functional specialization.」

「The Group is implementing its 5-year medium-term management plan for the fiscal year ending June 2020 and pursuing continued, stable growth based on a recurring-revenue business.」

「The Group is implementing its 5-year medium-term management plan for the fiscal year ending June 2020 and is working to expand revenue and profit and enhance corporate value over the medium to long term through 3 basic strategies: continued, stable growth based on a recurring-revenue business; the creation of high-value-added services that further expand value for customers; and faster decision-making and talent development through functional specialization.」

「Based on its 5-year medium-term management plan for the fiscal year ending June 2020, the Group is working to expand revenue and profit and enhance corporate value over the medium to long term through 3 basic strategies: continued, stable growth based on a recurring-revenue business; the creation of high-value-added services that further expand value for customers; and faster decision-making and talent development through functional specialization.」

「Based on its 5-year medium-term management plan for the fiscal year ending June 2020, the Group pursued (1) continued, stable growth based on a recurring-revenue business.」

「The Group continues to pursue (1) continued, stable growth based on a recurring-revenue business under its medium-term management plan.」

「Against this backdrop, the Group continued to operate based on 3 strategies: (1) continued, stable growth based on a recurring-revenue business under the medium-term management plan; (2) the creation of high-value-added services that further expand value for customers; and (3) faster decision-making and talent development through functional specialization. While seeking to enhance corporate value over the medium to long term, the Group worked to improve service quality and productivity, actively promoted new businesses and services, and worked to expand revenue and profit.」

「The Group continues to operate based on 3 strategies: (1) continued, stable growth based on a recurring-revenue business under the medium-term management plan; (2) the creation of high-value-added services that further expand value for customers; and (3) faster decision-making and talent development through functional specialization.」

「(1) Continued, stable growth based on a recurring-revenue business」

「Against this backdrop, the Group continued to pursue 3 strategies: continued, stable growth based on a recurring-revenue business; the creation of high-value-added services that further expand value for customers; and faster decision-making and talent development through functional specialization. With the aim of enhancing corporate value over the medium to long term, the Group worked to improve its sales capabilities, profitability and service quality across the Group and establish further core businesses.」

「Against this backdrop, the Group continues to pursue 3 strategies: continued, stable growth based on a recurring-revenue business; the creation of high-value-added services that further expand value for customers; and faster decision-making and talent development through functional specialization, with the aim of enhancing corporate value over the medium to long term.」

「The company continues to pursue 3 strategies: continued, stable growth based on a recurring-revenue business; the creation of high-value-added services that further expand value for customers; and faster decision-making and talent development through functional specialization.」

「To ensure sustainable growth, (1) continued, stable growth based on a recurring-revenue business」