How do you think the business environment will change in the future?

We will explain this in two parts: Training Business and Future Actions.

＜Training Business＞

There is a firm need in the career development education market, driven by efforts to improve labor productivity and reskilling, as well as to increase corporate value through human capital management. The size of the career training market, as calculated by our company, is on a recovery trend after temporarily shrinking due to the COVID-19 pandemic and is estimated to be from approximately 340 billion yen(*1) in 2021 to approximately 400 billion yen in 2025 (*1). Currently, our market share is approximately 2%, and we believe there is significant room for growth in the training business going forward.

＜IT Services＞

The size of the IT market for human resources departments related to the IT services business is estimated to be approximately 200 billion yen in 2020 and 420 billion yen in 2025 (*2), we assume that demand for IT and Web marketing needs for HR operations will grow among medium-sized and growing companies.

*1 Calculated based on the MHLW's Basic Survey on HR Development (2019) and MIC' Labor Force Survey.c

*2 Calculated based on METI's [2020 Basic Survey on Information and Communication Industry], May 28, 2021

■Future Actions

We believe that the two challenges in human capital management that companies face are "increasing the value of human capital" and "disclosing information on human capital." In response to the challenges, we will develop and provide services in three areas to expand our business from multiple perspectives: education, including DX; human capital information management tools based on the "Leaf" (HR support system and LMS); and consulting and assessment. In addition, we will further strengthen our sales and content development systems tailored to client segments and focus on acquiring new clients and increasing sales per organization.