Growth strategy of ODK Solutions <3839>. Mid-term management plan (fiscal year 2025-2027): The rolling method, revised every year to respond appropriately to changes in the management environment, has set goals of consolidated sales of 850 million yen, operating profit of 90 million yen, and ROIC of 7.0% for the final year of fiscal year 2027. As a basic policy, we will continue our growth strategy, but in this three-year plan, we will prioritize measures to improve profitability and promote the reconstruction of existing businesses through cost reduction on a consolidated basis through group restructuring and offering at appropriate prices, and promotion of early profitability of new businesses. As a capital allocation policy, we will maintain stable and continuous dividends and shareholder benefits while investing in growth for three years with an investment framework of approximately 3 billion yen, allocated to investment related to next-generation service creation for about 500 million yen, investment in mergers and acquisitions for about 800 million yen, and investment to contribute to improving the profitability of existing businesses for about 1.7 billion yen.
The emphasis of 2. is to promote a new business portfolio and realize group synergy. In promoting the new business portfolio, we aim to develop and monetize new services that support individual career formation beyond the one-time point of university entrance exams as "EdTech × FinTech." Specifically, we will expand new services such as Web3.0 service "Appdemie (R)", career experience platform "Career Port", evaluation input and management system "iiscore-U" for universities, and new services for human resource matching, such as learning platforms "SLAP" and "iStudy (R) LMS," for recareering and reskilling. As future business areas, we are also considering entry into fields such as "Alumni Services," "Talent Management," and "Financial Education." For realizing group synergies, we are undertaking cost reductions on a consolidated basis with a view to intra-group reorganization and utilizing data held by the university entrance exam portal site "UCARO (R)" within the group. For promoting mergers and acquisitions and alliances, we will promote the acquisition of missing management resources (IT personnel, establishment of bases in the Nagoya metropolitan area for educational businesses, acquisition of technology and data required for realizing data businesses, and acquisition of new business areas) in order to realize early implementation of growth strategies.
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Mid-term management plan (fiscal year 2025-2027) established in April 2024 (rolling method revised every year to respond to changes in the management environment) aims for consolidated sales of 850 million yen, operating profit of 90 million yen, and ROIC of 7% in the final year of fiscal year 2027. As a basic policy, we will continue our growth path and prioritize measures to improve profitability in this three-year plan, promote the reconstruction of existing businesses on a consolidated basis through group restructuring and offering at appropriate prices, and promote the early profitability of new businesses. For realizing group synergies, we are undertaking cost reductions on a consolidated basis with a view to intra-group reorganization and utilizing data held by the university entrance exam portal site "UCARO (R)" within the group. For promoting mergers and acquisitions and alliances, we will promote the acquisition of missing management resources (IT personnel, establishment of bases in the Nagoya metropolitan area for educational businesses, acquisition of technology and data required for realizing data businesses, and acquisition of new business areas) in order to realize early implementation of growth strategies.
The emphasis of the priority measures is the promotion of a new business portfolio, the realization of group synergies, and the promotion of mergers and acquisitions and alliances. In promoting the new business portfolio, we aim to develop and monetize new services that support individual career formation beyond the one-time point of university entrance exams as "EdTech × FinTech." Specifically, we will expand new services such as Web3.0 service "Appdemie (R)", career experience platform "Career Port", evaluation input and management system "iiscore-U" for universities, and new services for human resource matching, such as learning platforms "SLAP" and "iStudy (R) LMS," for recareering and reskilling. As future business areas, we are also considering entry into fields such as "Alumni Services," "Talent Management," and "Financial Education." For realizing group synergies, we are undertaking cost reductions on a consolidated basis with a view to intra-group reorganization and utilizing data held by the university entrance exam portal site "UCARO (R)" within the group. For promoting mergers and acquisitions and alliances, we will promote the acquisition of missing management resources (IT personnel, establishment of bases in the Nagoya metropolitan area for educational businesses, acquisition of technology and data required for realizing data businesses, and acquisition of new business areas) in order to realize early implementation of growth strategies.
In its basic strategy, the company aims to rebuild its core business and monetize its data business, while emphasizing the deepening of individual revenue management, expanding target markets, and utilizing research and development results for maximizing individual value. In deepening individual revenue management: in the field of education, we promote price rationalization based on customer-specific revenue management, expansion of BPO outsourcing areas (such as ordering the results and passing of highly profitable Kanto area universities), and in the financial field, the thorough revenue management of service units, improvement of the profitability of "mynaone (R)" through the acquisition of major customers, human resource development support related to the acquisition of major customers Such as promoting the expansion of new services by enhancing the functions of e-learning platform "SLAP." For expanding target markets: in the field of education, we are strengthening our presence in the Chukyo area, expanding services beyond the examination department, and in the financial field, we aim to acquire foreign and medium-sized securities and other financial institutions. For utilizing research and development results for maximizing individual value, we develop new services that utilize the research and development results of Web3.0 service "Appdemie (R)" to support corporate marketing and recruitment activities and to support individual career formation and job hunting activities.
As one of the efforts toward achieving the mid-term management plan, subsidiary Potos is promoting the expansion of the career experience platform "Career Port," which was launched in August 2023. It is a service that leads to the formation of a society without mismatches and the resolution of a social issue that has lasted for over 30 years, "30% turnover within three years of joining the company," through cooperation with UCARO(R) and "corporate recruitment branding" x "career formation support for university students." There are examples of introducing companies such as Isawa Securities, F.C. Osaka, Gakken HD, and Credit Saison. In addition to enhancing the service lineup, such as the "Marketing Support Package," they also support introductory company's experiential events. In February 2024, they held a workshop for university students to envision the future of credit cards with Credit Saison, and in March of the same year, they held an experiential event for university students to learn about investment and money through financial education games with Isawa Securities. Also in April of the same year, they held a real event for university students "The earlier you prepare, the better!? Learn happily at the forefront of Gakuchika" in collaboration with NINJAPAN, Inc., which operates the strategic job hunting school "Abuild Job Hunting."
(Authored by FISCO guest analyst Masanobu Mizuta)