CHANGE Holdings (3962) Investor presentation summary

Revision background and business plan update

• FY26/3 operating profit was ¥11.2 billion, below the ¥14 billion forecast, prompting a revision of the mid-term plan and pushing the ¥18 billion operating profit target from FY28/3 to FY30/3.

• Growth targets for the fundbook business were lowered, while targets for the Hometown tax and central government consulting businesses were raised due to expected market share gains and strong performance.

• Capital allocation shifted to prioritize organic growth, reducing the M&A quota from ¥30 billion to ¥13 billion, and allocating ¥5 billion for share repurchasing.

• Dividend payments of approximately ¥7.5 billion are planned, based on a DOE of 3.6%.

Financial targets and capital allocation

• FY30/3 targets: revenue of ¥70 billion (CAGR +7.3%), operating profit of ¥18 billion (CAGR +12.5%), EPS of 168 (CAGR +13.9%), and ROE of 16.5%.

• Dividend per share is projected to rise from ¥23.0 in FY26/3 to ¥36.7 in FY30/3.

• Shareholder returns are prioritized over M&As, with a focus on share repurchasing and debt repayment.

• Dividend policy is based on a DOE of 3.6%, with a minimum payout ratio of 15% and shareholder benefits up to ¥20,000 annually in Digital Gifts®.

Business strategy and market outlook

• Emphasis on organic growth, leveraging synergies across DX consulting, education, and networks with local governments, private companies, and financial institutions.

• Strengthening the regional creation domain through Hometown tax, tourism, and carbon credits, with a focus on revitalizing local economies.

• Full entry into inbound tourism via a joint venture with WAmazing, targeting Japan’s government goal of 60 million foreign visitors by 2030.

• Cybersecurity business expansion through alliances and enhanced service lines, serving both large corporations and regional SMEs.

• Domestic DX investment is projected to reach ¥9.2 trillion by 2030, with significant opportunities in M&A brokerage and cybersecurity.