TANABE CONSULTING GROUP CO.,LTD.

Business Details

A single segment operated by the Tanabe Consulting Group, founded in 1957. The group provides team consulting that supports top management of mid-sized to large enterprises across the entire spectrum of management—from formulating management strategy through to implementing and executing management operations via professional DX services. It operates across five domains—Strategy & Domain, Digital & DX, HR, Finance & M&A, and Brand & PR Consulting—supported by a group of 8 companies and approximately 900 personnel.

Recent Overview

Achieved record-high revenue in the final year of the medium-term management plan, clearing all KPI targets

In FY2026 (ending March 2026), revenue reached ¥16,283 million (up 12.0% year on year) and operating profit reached ¥1,814 million (up 20.9%), both record highs since the company's founding. All revenue, profit, and ROE targets of the medium-term management plan (2021–2025) "TCG Future Vision 2030" were achieved. Peacemind Inc. (EAP and corporate wellbeing), which joined the group in June 2025, was consolidated for nine months, driving the HR domain to the fastest growth at up 29.7% year on year. A new medium-term management plan (2026–2030) was formulated, setting targets of ROE of 15% and market capitalization of ¥500 million.

Key Products

Growth Drivers

• High growth in the HR Consulting domain (up 29.7% year on year): addition of EAP and corporate wellbeing services through Peacemind Inc.'s group participation and expanding demand for human capital management
• Continued growth in the Digital & DX domain (up 10.1% year on year): strong consulting demand for ERP implementation, AI implementation, marketing DX, and more
• Strategy & Domain domain (up 10.7% year on year): rising demand for long-term vision and medium-term management plan formulation, increased government/public sector projects, and reclassification of Surpass's marketing and sales support business
• Finance & M&A domain (up 12.6% year on year): expanding demand for integrated support in corporate value enhancement, business succession, and overseas M&A, and growth in corporate governance strengthening themes
• Significant improvement in gross profit margin (45.5% → 48.9%): increased share of high-value-added consulting services
• Launch of new medium-term management plan (2026–2030) "TCG Future Vision 2030": continuing active M&A investment and shareholder returns toward targets of 15% ROE and ¥500 million market capitalization
• Domain diversification through growth-oriented M&A investment: expansion of specialized domains through the group participation of Surpass Co., Ltd. and Peacemind Inc.

Risks

• Risk that deteriorating business conditions for client companies due to geopolitical conflict risk or U.S. trade policy could lead to reduced consulting investment
• Risk that increased selling, general and administrative expenses (up 20.3% for the full year) from active human capital and M&A investment could pressure profit
• Goodwill impairment risk (period-end balance of ¥1,524 million, up 51.0% year on year): increasing due to group expansion through M&A
• Decline in equity ratio (74.3% → 69.6%): reduced financial capacity due to M&A investment, treasury stock acquisition, and dividend payments
• Decrease in cash and cash equivalents (¥7,665 million → ¥6,490 million): reduced liquidity due to securities acquisition, treasury stock acquisition, and dividend payments
• Securing and developing consulting talent: risk of rising personnel costs due to intensifying competition for professional talent
• Increase in non-controlling interests (¥482 million → ¥809 million): growing minority shareholder profit due to group subsidiary expansion