DENTSU SOKEN INC. (4812) Stock Price

Dentsu Research Institute operates as the Dentsu Research Institute Group, consisting of the parent company, 14 subsidiaries, and 4 affiliated companies. The company provides six main service categories and operates four reporting segments organized by industry and solution type: "Financial Solutions," "Business Solutions," "Manufacturing Solutions," and "Communication IT."

Dentsu Research Institute's service offerings include consulting services that advise on business process transformation and IT utilization. Through custom system development, the company builds systems based on individual client requirements and provides maintenance services. The company also develops and provides its own proprietary software products, including implementation support, feature development, and maintenance services. Additionally, it distributes software products from domestic and international vendors, offering technical services and user training.

The company provides outsourcing and operation/maintenance services for client systems, including business process outsourcing (BPO). In the information equipment sales and other divisions, it supplies necessary hardware, database software, middleware, and related products.

The Financial Solutions segment provides IT solutions supporting financial operations for financial institutions and other enterprises. Business Solutions delivers IT solutions for management operations, primarily in accounting and human resources. Manufacturing Solutions offers IT solutions covering the entire product lifecycle in manufacturing. Communication IT provides IT solutions that optimize enterprise value chains and business processes.

Dentsu Research Institute's subsidiaries include Dentsu Research Institute IT Inc. and Dentsu Research Institute Secure Solutions Inc., which play important roles in their respective reporting segments. In 2024, the company expanded its business by making Mitsue-Links Inc. a subsidiary.

Dentsu Institute has established "Vision 2030," a long-term management vision toward 2030, and aims to become an "X Innovator" that realizes transformation of society and business through self-transformation. Under this vision, Dentsu Institute seeks to become a high-value-added company that meets expectations from society, businesses, and consumers.

Dentsu Institute's growth strategy centers on driving four self-transformations: expansion of business domains, acquisition of new capabilities, innovation of revenue models, and renewal of management foundations. Through these efforts, the company aims to evolve into a business that supports comprehensive problem-solving for enterprises and societal transformation.

The medium-term management plan "Social Evolution Implementation 2027" prioritizes integration of sales and technology functions, utilization of cutting-edge technology, promotion of external partnerships, and strengthening of proprietary solutions. This aims to deliver value from the perspective of enterprise and social transformation.

Dentsu Institute has set targets for 2027 of 210 billion yen in revenue, 31.5 billion yen in operating profit, 15.0% operating profit margin, ROE of 18.0% or higher, and 6,000 employees. To achieve these targets, the company has allocated a 75 billion yen growth investment fund and will pursue research and development and M&A activities.

As a financial policy, Dentsu Institute aims to establish a sound financial foundation while investing in growth fields and providing stable profit returns to shareholders. Regarding shareholder returns, the company targets raising the dividend payout ratio to 50% by 2027.