CHANGE Holdings,Inc.

Business Details

A segment that brings transformation to the business operations and business models of Japanese companies through new technology and digital talent development. Composed of two areas: private-sector DX & M&A brokerage (BPO Service, reskilling training, robotics, IoT beacons, M&A brokerage) and cybersecurity. Main customers are private companies and financial institutions. Following the full consolidation of fundbook Co., Ltd. as a subsidiary in December 2024, the M&A brokerage business has become fully operational, expanding the segment's revenue scale.

Recent Overview

Revenue rose 14.6%, but segment profit fell sharply by 45.6% due to the disappearance of a one-time gain

For the full year of FY2026 (ending March 2026), the NEW-IT Transformation Business posted revenue of ¥23,841 million (up 14.6% year on year), achieving revenue growth, while segment profit fell sharply to ¥3,257 million (down 45.6% year on year). The main cause was the disappearance of the one-time gain of ¥1,569 million from the revaluation of shares recorded in the prior consolidated fiscal year in connection with Digital Growth Academia Co., Ltd. becoming an equity-method affiliate. The BPO business is promoting productivity improvement through AI utilization, M&A brokerage is strengthening deal origination through alliances with major financial institutions, and the DX tools business has progressed steadily with continued customer acquisition. In the cybersecurity area, demand has increased against the backdrop of frequent incidents at major domestic companies, and the strengthening of sales channels and service lines centered on partnerships has progressed steadily.

Key Products

Growth Drivers

• Strengthening M&A brokerage deal origination and improving conversion rates through alliances with major financial institutions
• Rising security demand driven by a series of cybersecurity incidents at major domestic companies
• Expansion into new BPO areas and introduction of new services while improving productivity through AI utilization
• Strengthening DX proposals through enhanced AI training content and AI utilization in on-site operations
• Expanding the customer base through strengthened alliance partners and developing/deploying security products suited to the AI era
• Expanding sales of the DX tools business to manufacturing sites and the retail industry

Risks

• Year-on-year deterioration in profit due to the disappearance of the one-time gain (¥1,569 million) from share revaluation recorded in the prior consolidated fiscal year (materialized in FY2026 (ending March 2026), a 45.6% decline in segment profit)
• Risk of impairment of goodwill and intangible assets due to an increase in consolidated subsidiaries through M&A
• Intensifying competition in the cybersecurity area and rising costs of securing talent
• Increased costs for strengthening internal control and governance systems due to an increase in group companies
• Uncertainty in deal origination in the M&A brokerage business and the impact of economic fluctuations
• Pressure on profitability from an increase in selling, general and administrative expenses (consolidated total up from ¥13,360 million in the prior period to ¥17,766 million in the current period)