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Financial results presentation9644TANABE CONSULTING GROUP CO.,LTD.Information and Communications, Services and Others

Supplementary Explanatory Materials for the First Quarter Financial Results for the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, sales increased across all management consulting areas, and net sales, operating profit, ordinary profit and net profit all exceeded the year-earlier period. Net sales and operating profit reached record highs for a first quarter.

Worth reading
60In 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
16.5
Year-on-year revenue growth (%)
Wording
Definitive
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,844 million+16.5%
Operating profit¥285 million+18.9%
Ordinary income¥292 million+23.1%
Net income¥160 million+25.9%
Gross Profit Margin47.7 %
Operating profit margin7.4 %
Selling, general and administrative expensesAmount not stated
Results for the three months of the current quarter
Net Sales
¥3,844 million
Operating profit
¥285 million
Ordinary income
¥292 million
Profit attributable to owners of parent for the quarter
¥160 million
Full-year earnings forecast
Net Sales
¥17,200 million
Gross profit
¥8,480 million
Operating profit
¥1,900 million
Ordinary income
¥1,900 million
Profit attributable to owners of the parent
¥1,155 million
EPS
¥35.97
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue increase¥544 million
  • Increase in costs of sales¥140 million
  • Increase in human capital investment¥245 million
  • Increase in digital and DX investment¥18 million
  • Increase in branding and marketing investment¥16 million
  • Increase in other general and administrative expenses¥78 million
  • Increase in operating profit¥45 million
New initiatives
  • Change shareholder benefits from QUO cards to digital gifts
  • From the fiscal year ending March 2027, reclassify brand consulting and other services from Digital and DX to Branding and PR, and revise the organizational structure accordingly
  • From the fiscal year ending March 2027, reclassify the FP&A business from Digital and DX to Finance and M&A, and revise the organizational structure accordingly
  • Pursue 4 or more M&A transactions under the medium-term management plan, with an investment of ¥2–3 billion
  • Develop professional DX/AX
Key KPIsA metric the company considers important as a management benchmark.
  • Team consulting revenue¥2,507 million
    Year on year against the same period last yearAbove the year-earlier period; record high
  • Number of team consulting engagements1,198 Engagements
    Year on year against the same period last yearAbove the year-earlier period; record high
  • Number of team consulting clients1,001 companies
    Year on year against the same period last yearAbove the year-earlier period; record high
  • Base revenue¥2,802 million
    Year on year against the same period last yearAbove the year-earlier period; record high
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of priority target companies50,000 companies
  • Assumed average unit price¥10 million
  • LTV (contract retention rate) target70 % or higher
Segment results
  • Strategy and Domain
    Net Sales¥800 million
    Year-on-year (%)17.6
  • Digital and DX
    Net Sales¥642 million
    Year-on-year (%)13.4
  • HR
    Net Sales¥824 million
    Year-on-year (%)27.8
  • Finance and M&A
    Net Sales¥777 million
    Year-on-year (%)9.2
  • Branding and PR
    Net Sales¥759 million
    Year-on-year (%)15.7
  • Other
    Net Sales¥40 million
    Year-on-year (%)1.4
Medium-term management plan targets
  • Consolidated net sales
    Target value25,000
    Target fiscal yearFiscal year ending March 2031
  • Consolidated operating income
    Target value3,000
    Target fiscal yearFiscal year ending March 2031
  • Operating margin
    Target value12
    Target fiscal yearFiscal year ending March 2031
  • ROE
    Target value15
    Target fiscal yearFiscal year ending March 2031
  • Consolidated total payout ratio
    Target value100
    Target fiscal yearFiscal year ending March 2031
  • DOE
    Target value7
    Target fiscal yearFiscal year ending March 2031
Financial targets
  • ROE
    Target value15
    Target fiscal yearFiscal year ending March 2031
  • PBR
    Target value4
    Target fiscal yearFiscal year ending March 2031
  • Financial Leverage
    Target value1.5
    Target fiscal yearFiscal year ending March 2031
Market Size / Share
  • Priority target market50,000 companies
  • Market Size¥5,000 100 million
  • Proportion of priority target customers79 %
Number of employees
866 people
Hiring planPlans call for 960 employees at the end of the fiscal year ending March 2027 and 1,250 employees at the end of the fiscal year ending March 2031
Annual Dividend
Annual dividend per share¥29
Interim¥13
End of period¥16
Payout ratio
80.3 %
Consolidated total payout ratioApprox. 100.0%
DOEAt least 7%
Acquisition of treasury shares
PolicyConduct share repurchases flexibly
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥3,844 million (YoY +16.5%)
Operating profit¥285 million (YoY +18.9%)
Ordinary income¥292 million (YoY +23.1%)
Net income¥160 million (YoY +25.9%)
Gross Profit Margin47.7 %
Operating profit margin7.4 %
Selling, general and administrative expenses非開示
Results for the three months of the current quarterNet Sales ¥3,844 million / Operating profit ¥285 million / Ordinary income ¥292 million / Profit attributable to owners of parent for the quarter ¥160 million
Full-year earnings forecastNet Sales ¥17,200 million / Gross profit ¥8,480 million / Operating profit ¥1,900 million / Ordinary income ¥1,900 million / Profit attributable to owners of the parent ¥1,155 million / EPS ¥35.97
Segment resultsSegment Strategy and Domain / Net Sales ¥800 million / Year-on-year (%) 17.6, Segment Digital and DX / Net Sales ¥642 million / Year-on-year (%) 13.4, Segment HR / Net Sales ¥824 million / Year-on-year (%) 27.8, Segment Finance and M&A / Net Sales ¥777 million / Year-on-year (%) 9.2, Segment Branding and PR / Net Sales ¥759 million / Year-on-year (%) 15.7, Segment Other / Net Sales ¥40 million / Year-on-year (%) 1.4
Breakdown of Factors Affecting the ChangeFactors Revenue increase / Amount ¥544 million, Factors Increase in costs of sales / Amount ¥140 million, Factors Increase in human capital investment / Amount ¥245 million, Factors Increase in digital and DX investment / Amount ¥18 million, Factors Increase in branding and marketing investment / Amount ¥16 million, Factors Increase in other general and administrative expenses / Amount ¥78 million, Factors Increase in operating profit / Amount ¥45 million
Key KPIsIndicator name Team consulting revenue / Value ¥2,507 million / Year on year against the same period last year Above the year-earlier period; record high, Indicator name Number of team consulting engagements / Value 1,198 Engagements / Year on year against the same period last year Above the year-earlier period; record high, Indicator name Number of team consulting clients / Value 1,001 companies / Year on year against the same period last year Above the year-earlier period; record high, Indicator name Base revenue / Value ¥2,802 million / Year on year against the same period last year Above the year-earlier period; record high
Unit price and quantity metricsIndicator name Number of priority target companies / Value 50,000 companies, Indicator name Assumed average unit price / Value ¥10 million, Indicator name LTV (contract retention rate) target / Value 70 % or higher
Number of employeesValue 866 people / Hiring plan Plans call for 960 employees at the end of the fiscal year ending March 2027 and 1,250 employees at the end of the fiscal year ending March 2031
Medium-term management plan targetsItem Consolidated net sales / Target value ¥25,000 million / Target fiscal year Fiscal year ending March 2031, Item Consolidated operating income / Target value ¥3,000 million / Target fiscal year Fiscal year ending March 2031, Item Operating margin / Target value 12 % / Target fiscal year Fiscal year ending March 2031, Item ROE / Target value 15 % / Target fiscal year Fiscal year ending March 2031, Item Consolidated total payout ratio / Target value 100 Indicative % / Target fiscal year Fiscal year ending March 2031, Item DOE / Target value 7 % or higher / Target fiscal year Fiscal year ending March 2031
Financial targetsIndicator name ROE / Target value 15 % / Target fiscal year Fiscal year ending March 2031, Indicator name PBR / Target value 4 times or more / Target fiscal year Fiscal year ending March 2031, Indicator name Financial Leverage / Target value 1.5 Times or lower / Target fiscal year Fiscal year ending March 2031
Annual DividendAnnual dividend per share ¥29 / Interim ¥13 / End of period ¥16
Payout ratio80.3 %
Acquisition of treasury sharesAmount Not disclosed / Number of Shares Not disclosed / Period Not disclosed / Policy Conduct share repurchases flexibly
Market Size / ShareItem Priority target market / Value 50,000 companies, Item Market Size / Value ¥5,000 100 million, Item Proportion of priority target customers / Value 79 %
New initiativesChange shareholder benefits from QUO cards to digital gifts, From the fiscal year ending March 2027, reclassify brand consulting and other services from Digital and DX to Branding and PR, and revise the organizational structure accordingly, From the fiscal year ending March 2027, reclassify the FP&A business from Digital and DX to Finance and M&A, and revise the organizational structure accordingly, Pursue 4 or more M&A transactions under the medium-term management plan, with an investment of ¥2–3 billion, Develop professional DX/AX
Items this document does not state (8)
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 backlogKey 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.

Demand for consulting services to support growth was strong, with long-term visions and medium-term management plans, DX, HR, M&A, branding and PR performing well. The increase in sales led to higher gross profit, and operating profit increased despite more aggressive investment in human capital and other areas.

How to read this page

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Supplementary Explanatory Materials for the First Quarter Financial Results for the Fiscal Year Ending March 2027 | TANABE CONSULTING GROUP CO.,LTD. (9644) timely disclosure | Komori