Riding a tailwind, increasing contributions, and achieving growth
I would like to take this opportunity to express my gratitude to our shareholders for their continued support.
The fiscal year under review was an important year in which we launched our new medium-term management plan. We invested in human resources and made up-front investments in each business to achieve our target operating profit of 50.0 billion yen for the fiscal year ending March 31, 2029. The fundamental strength of our earnings base, which is built upon recurring revenue, was revealed, and it enabled us to achieve record-high profit again in the first fiscal year of our new medium-term management plan.
Amid the rapid changes in our business environment that have occurred since the end of the COVID-19 pandemic, which may be called a major transformation of Japan or the world, we confirmed how human relocation activities will change and how the labor shortage will affect our businesses.
First, our Fringe Benefit Business and Leased Corporate Housing Management Business are experiencing a tailwind due to the enhancement of fringe benefits in response to the labor shortage. We will therefore improve the convenience of the support options and systems of both businesses and provide functions that directly result in companies facing serious labor shortages attracting and retaining human resources, expanding our contributions as a true solution provider. In the Global Relocation Support Business, we will enhance our services supporting Japanese companies in the globalization of their human resources and achieve growth as the only entity that can provide comprehensive support in this area.
In addition, in our scenario for the Property Management Business and Tourism Business, we envision leveraging the customer referral potential of our Leased Corporate Housing Management Business and our Fringe Benefit Business to achieve significant growth based on our proven track record as a reliable organization addressing business succession and business turnaround issues in the two industries.
In light of the macro issues in Japan, our businesses are exactly in a position to contribute greatly to the solution of these macro issues, and we are ready to benefit from the resulting tailwind. Accordingly, we will accelerate our efforts to achieve the sustainable enhancement of our corporate value under our vision of becoming Japan's leading problem-solving company.
As we have already announced, we will increase our ROE target under our medium-term management plan, "Fourth Olympic Plan," to the 25-30% level to push forward with management with a greater focus on capital efficiency. Further, reflecting the above, we have decided to commit to a progressive dividend policy with a target total return ratio of 60% and a target dividend payout ratio of 50%, aiming to increase shareholder returns significantly during the period of the medium-term management plan.
We humbly request the continued support of our shareholders.
Kenichi Nakamura
Representative Director, CEO Relo Group,Inc.
