Medium-Term Management Plan (FY2025-FY2029)

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Medium-Term Management Plan (FY2025-FY2029)

Basic Policy

Further Strengthening the Management Foundations for the Next Decade

To date, the S-Pool Group has built its foundations for new growth in 10-year cycles. As it approaches a new decade, in the dramatically changing business environment of Human Resource Outsourcing Services, the Group believes further progress will be based on its three core businesses and that continuing growth will require the creation of new business.

Numerical targets

FY2029
Revenue
36.0 billion yen
Revenue
FY2029
Operating
profit
4.5 billion yen
Operating profit

Priority Strategies

Strategy 1

Maintaining organic growth based on core businesses

We have identified Special Needs Employment Services, Sustainability Support Services, and Community Development Support Services, each of which combines high growth potential with competitive advantages, as core business fields to drive the Group's growth. In Human Resource Outsourcing Services, in which the key call center staffing business is likely to experience demand contraction as use of AI and digital transformation (DX) accelerates, we will enhance competitive advantages by increasing use of AI and achieving digital transformation.

Three core businesses

Special Needs Employment Services
FY2024 results FY2029 target CAGR
Revenue 8.0 billion yen 13.0 billion yen +10.6%
Number of farms 53 90 -
Nationwide expansion of farm services
  • Expanding the existing model into seven major urban areas (2026 and beyond)
  • Deployment of new small-scale model to provincial cities (2027 and beyond)
Wide-area Administrative BPO Services
FY2024 results FY2029 target CAGR
Revenue 1.5 billion yen 2.9 billion yen +14.0%
Number of centers 21 30 -
Percentage of wide-area administrative services 30% 70% -
Establishing the wide-area administrative mode
  • Expanding BPO centers
  • Increasing the percentage of wide-area administrative services
Environmental Management Support Services
FY2024 results FY2029 target CAGR
Revenue 1.5 billion yen 2.4 billion yen +8.5%
Aiming to be the leading player in sustainability management consulting
  • Actively growing the customer base and seeking out new customers by expanding the service menu
  • Establishing a community platform

Main business

Human Resource Outsourcing Services
FY2024 results FY2029 target CAGR
Revenue 10.6 billion yen 11.0 billion yen +0.7%
Adding increased value to achieve differentiation
  • Strengthening the capacity to improve operations on site by strengthening the skills and expertise of field consultants
  • Boosting customer satisfaction by increasing retention rates of assigned staff
Strategy 2

Advancing business through Group synergies

We will achieve further growth by making the most of the strengths and customer base of each business to create new business opportunities. In particular, we will grow the business fields of Special Needs Employment Services, Environmental Management Support Services, and Wide-area Administrative BPO Services by actively introducing new services. We will strive to maximize sales by enhancing collaboration among Group members in other existing business.

Strategy 3

Improving profitability and management efficiency through AI and digital transformation (DX)

We will promote the active use of AI and digital transformation (DX) Groupwide. We will strive to achieve large-scale improvements in operations and lower costs by aggressively promoting digitalization and automation in back-office operations. We will also achieve more efficient and effective sales operations by applying AI to formulate sales strategies, customer analysis, and sales process reforms.

Strategy 4

Developing a diverse workforce for the next generation

Under our policy that seeks corporate growth based on employee growth, we aim to be an organization in which all employees can work with vitality and grow together based on shared values, by developing an environment based on respect for individual diversity in which individual employees can demonstrate their abilities to the fullest. We will focus on developing core human resources to lead Group management to support sustained growth and achieving progress on and developing leaders capable of welcoming change and aggressively pursuing new challenges.

Financial targets

Financial targets for FY2029
Consolidated payout ratio: 30% or higher
dividends remaining undiminished until the single-year consolidated payout ratio exceeds 60%
Maintaining high level ROE
exceeding the cost of equity with stability