Zenken Corporation: Matters Concerning Business Plan and Growth Potential

Business Structure and Key Points of the Mid-Term Plan

Zenken Corporation positions marketing and the overseas talent segment at its core, designating overseas talent introduction and retention support as the growth driver. Under the mid-term plan 'Road to 250', the revenue composition ratio of the overseas talent segment is planned to increase from 25% in fiscal 2025 (ending June) to 43% by fiscal 2030 (ending June), aiming to improve overall corporate profitability and ROE. The marketing segment will strengthen total consulting capabilities and expand human-capital-based marketing. The dividend policy will shift to a progressive dividend, using whichever is higher between DOE and payout ratio.

Outlook and Capital Allocation

The consolidated outlook for the fiscal year ending June 2027 assumes revenue of 6,800 million yen and operating income of 770 million yen. During the mid-term plan period, a 10 billion yen M&A investment framework is established, and with assumed use of financial leverage, cross-selling between businesses and synergy creation will be pursued. Targets include ROE above 13% and ROIC above 9%, with a long-term market capitalization goal exceeding 25 billion yen. The progressive dividend policy will continue, using whichever is higher between DOE 2.5% and a payout ratio of 50% as the benchmark.