CHANGE Holdings (3962) Investor presentation summary

Analysis of current status

• ROE has remained above 11% since listing, with a declining PER trend, except for a six-month period in 2022.

• Estimated cost of equity is about 13%, with market pricing in slower growth due to regulatory changes in the Furusato Nozei program.

• Target EPS for FY30/3 is ¥168, with a projected CAGR of 13.9%, aiming to reinforce investor confidence in growth.

Measures and initiatives for enhancing corporate value

• Revised financial targets include operating profit of ¥18 billion and revenue of ¥70 billion by FY30/3, with a focus on improving NEW-IT Transformation segment profitability.

• Publitech growth targets have been raised, with strong demand in public-sector DX and new business areas like inbound tourism and carbon credits.

• NEW-IT Transformation segment is expected to account for 25% of operating profit by FY30/3, up from 9%.

• Capital allocation prioritizes shareholder returns, including ¥5 billion for share repurchasing and reduced M&A quota from ¥30 billion to ¥13 billion.

• Dividend policy is based on a DOE of 3.6%, with shareholder benefits up to ¥20,000 annually in Digital Gifts®, targeting a total yield of 10.1%.

• Initiatives include reducing cost of equity, disciplined financial leverage, and enhanced IR to improve market expectations.

Dialogue with shareholders and investors

• Regular IR activities include quarterly financial briefings, online Q&A, and over 100 annual meetings with institutional investors.

• Shareholder meetings are hybrid, with direct dialogue opportunities and post-meeting sessions for feedback.