Management Policy

Outlined below is the basic policy underlying the management of the S-Pool Group.
Here, we describe our basic philosophy, management indicators, and issued to be handled.

1. Basic policy of Company management

In light of its mission “Applying the power of outsourcing to support corporate innovation and solutions to society's challenges,” the Group seeks to create new social value and to serve as an essential presence by promoting social businesses that deliver solutions to social issues. Based on the fundamental policy of portfolio management, the Group aims to be a corporate entity capable of withstanding any changes in the external environment by developing businesses across multiple business domains that contribute significantly to society and create added value.

2. Target management indicators

In the medium-term management plan announced on January 14, 2025, our group set the numerical management targets of 36 billion yen in sales revenue and 4.5 billion yen in operating income for the fiscal year ending November 30, 2029. Additionally, we seek continually to strengthen our corporate value and to return profits to shareholders, targeting a consolidated dividend payout ratio of 30% or more.

3. Medium-/long-term management strategy

The Group will advance a new business strategy that focuses on the next decade of growth. 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. Key strategies for achieving the medium-term management plan are as follow.

Strategy I : 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.

Strategy II: 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 III: 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 IV: 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.

4. Priority business and financial topics

The Group recognizes the following four points as issues to be addressed in order to achieve sustained growth:

① Continual development of existing businesses
The Group considers that building stable revenue foundations through the continual development of existing businesses is essential to realizing sustained growth. In existing businesses, which form the basis of our operations, we aim to secure stable earnings by enhancing our competitive advantage through continuous improvement and value addition. In addition, by leveraging the strengths and customer base of each business and promoting the development of derivative businesses, we will work to diversify our earnings structure and aim for further growth.

② Reduce dependence on specific businesses
The two main businesses of Temporary Staffing Services and Special Needs Employment Services account for 79% of the Group's operating profit. The Group recognizes the urgent need to build new revenue sources to safeguard against sudden declines in the sales generated by these businesses due to a changing business environment or other factors. Specifically, we will aim for growth in new business domains such as business process outsourcing (BPO) services for local governments and environmental businesses, areas where future market growth is likely.

③ Securing high quality human resources
We believe that hiring talented people who resonate with our vision and strengthening our organizational structure are necessary for sustainable growth. We will further promote socially significant projects in order to employ human resources who are sensitive to social issues and capable of proactively working to solve them. To ensure that our talented employees are highly motivated and have long-term success, we have introduced various systems, including a Career Challenge System and a Company System. To enable employees to work with peace of mind over the long term, we have introduced a program whereby the Company matches employee contributions to a stock ownership plan (ESOP) on a one-to-one basis. We are also making various efforts to promote health management, including establishing a nurse’s office.