ZIGExN (3679) Investor presentation summary

Vision and strategic direction

• Transitioning from a matching technology provider to a matching agent, aiming to maximize life opportunities by deeply integrating into customer business processes from user acquisition to BPO, leveraging both AI and human capabilities.

• Targeting revenue of over JPY 50 billion, EBITDA of over JPY 12 billion, and ROE of approximately 20% by FY3/2031.

• Focus on expanding the agency model in HR, improving consultant productivity with AI, and expanding TAM through M&A.

• Life Service segment to vertically integrate from user acquisition to BPO, improving profitability via automation and a pay-for-performance model.

• Strategic use of M&A, optimizing business portfolio, and reinvesting cash flows for compound growth.

Business performance and growth strategy

• Over 20 connected industries, 40+ services acquired via M&A, and approximately 23,000 corporate clients with an average unit price per client of JPY 1.25 million.

• Sustainable growth driven by the ZIGEXN Matching Agent (ZMA) model, combining AI and talent allocation for deeper business process involvement.

• Vertical HR segment aims for revenue CAGR of 15% and operating income CAGR of 11%, leveraging labor shortages, job mobility, and wage growth.

• Life Service segment to establish a stable earnings base by expanding from user acquisition to BPO and transforming revenue structure.

• TAM expansion from recruitment costs to labor costs (approx. JPY 30 trillion) and from promotion expenses to contract execution & BPO (approx. JPY 20 trillion).

Investment and M&A strategy

• 35 M&A transactions totaling approx. JPY 23 billion, with cumulative EBITDA exceeding investment amount and a payback period of 3-5 years.

• Future M&A to focus on larger deals (several billion JPY or more), programmatic roll-up and bolt-on acquisitions, and domain expansion.

• M&A entries are screened for capital efficiency, with underperforming assets subject to turnaround, divestiture, or liquidation.

• Cash cow businesses retained if ROIC exceeds cost of capital, with cash flows reinvested in high-growth areas.

• Strategic investment budget of over JPY 16 billion allocated for large-scale deals.