■Future Outlook of Yamada Consulting Group <4792>

1. Performance Outlook for the Fiscal Year Ending March 2025

The performance plan for the fiscal year ending March 2025 remains at a revenue of 21,100 million yen, a 4.8% decrease from the previous period, operating profit of 3,730 million yen, a 1.8% increase from the same period, ordinary profit of 3,730 million yen, a 0.1% increase, and net income attributable to the parent company's shareholders of 2,870 million yen, a 0.2% increase from the initial plan. The progress rate until the interim period is a high 58.8% for revenue and 77.6% for operating profit, but as previously mentioned, the interim period benefited from the sale of investment stocks with good returns and the success of large M&A projects, which are priced in the initial plan. However, even excluding these factors, the demand for management consulting and M&A advisory services is active, indicating a strong possibility of exceeding the initial plan. Nonetheless, the company plans to return some of the excess to employees as special bonuses (previous period paid a special bonus of 0.8 billion yen), so it seems unlikely that there will be a substantial overage.

(1) Consulting Business

The performance forecast for the consulting business for the fiscal year ending March 2025 anticipates a revenue of 18,870 million yen, an 8.6% increase from the previous period, and an operating profit of 2,770 million yen, a 6.3% decrease. The progress rate for the interim period is 53.7% for revenue and 68.1% for operating profit. Although there will be no large M&A projects in the latter half of the year, the need for management consulting services aimed at sustainable growth, such as developing medium-term management plans, human capital, sustainability management, and digital transformation strategies, remains strong, and steady revenue is expected in the second half.

In particular, regarding the M&A advisory business, the ability to match both the M&A matching capacity and management consulting skills stands out as a strength. By providing a one-stop solution that extends from FA work to PMI after M&A and support for the formulation and execution of medium-term management plans, efforts will be made to acquire customers and aim for further growth.

(2) Investment Business

The performance forecast for the investment business for the fiscal year ending March 2025 anticipates a revenue of 2,230 million yen, a 53.7% decrease from the previous period, and an operating profit of 960 million yen, a 35.6% increase. The progress rate until the interim period exceeds the full-year plan, with 102.2% for revenue and 105.2% for operating profit, due to the sale of high-yield investment stocks. It is expected to proceed in line with the plan unless there are further sales in the latter half of the year.

(Written by FISCO guest analyst, Jo Sato)