COMPANY RESEARCH AND ANALYSIS REPORT

Tanabe Management Consulting Co., Ltd.
9644
Tokyo Stock Exchange First Section

27-Feb.-2018
FISCO Ltd. Analyst

Yuzuru SatoFISCO Ltd.
http://www.fisco.co.jp

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/■ Index■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01
1. FY3/18 1H results........................................................................................................................................

01

2. FY3/18 outlook...................................... ......................................................................................................

01

3. Medium-term outlook............................ ......................................................................................................

02

4. Shareholder return policy....................... ......................................................................................................

02■Business overview---------------------------------------------------------------------------------------------------------------------------------------------------- 03
1. Company overview......................................................................................................................................

03

2. Business details...........................................................................................................................................

04■Result trends------------------------------------------------------------------------------------------------------------------------------------------------------------------ 08
1. FY3/18 1H results overview................... ......................................................................................................

08

2. Segment trends...........................................................................................................................................

08

3. Financial position and management indicators. ...........................................................................................

11■Business outlook-------------------------------------------------------------------------------------------------------------------------------------------------------- 12
1. Outlook for FY3/18 results..................... ......................................................................................................

12

2. Business strategy.. .......................................................................................................................................

13

3. Medium-term business plan.. .......................................................................................................................

15■Shareholder return policy---------------------------------------------------------------------------------------------------------------------------------- 18■Information security policy------------------------------------------------------------------------------------------------------------------------------- 19

We encourage readers to review our complete legal statement on “Disclaimer” page.

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/██Summary
Ongoing expansion of management consulting services bodes wellfor continued steady growth in the future
Tanabe Management Consulting <9644> (hereafter, also “the Company” or “Tanabe”), which was founded in 1957 andcelebrated its 60th anniversary last year, is a pioneer and a major presence in management consulting for mid-sizedcompanies and small-and medium sized enterprises (SMEs) in Japan. Its corporate mission is to “assist in the creationof “first call companies” that will be selected even 100 years from now. By combining the perspectives of domain(business strategy), including food and food services, healthcare, and home and lifestyle; function (organization
strategy), such as organizations and human resources, finance, and promotions; and region (regional strategy), madeup of bases developed in 10 major cities nationwide from Hokkaido to Okinawa, the Company is realizing stable
growth by expanding its “domain x function x region team consulting,” in which it forms teams from selecting optimum
consultants to meet customer needs. As its medium-term business strategy, the Company is promoting a “C&C
(Consulting and Conglomerate) strategy” (a strategy to diversify consulting domains), and it aims to provide customers
with new consulting value and achieve further sustainable growth alongside its customers. Its strengths include solidmanagement, debt-free operations, and a sturdy financial standing based on an equity ratio of more than 80%.
1. FY3/18 1H results
The Company reported higher sales and higher earnings in FY3/18 1H, with net sales rising 6.9% YoY to ¥3,947mn
and ordinary profit rising 2.5% to ¥442mn. Logging gains at both its management consulting business and sales
promotion (SP) consulting business, the Company finished comfortably ahead of its initial forecast of ¥3,750mn fornet sales and ¥330mn for ordinary profit. At its management consulting business, growing demand for consulting
services in areas such as medium-term management plan (vision) formulation and implementation, personnel recruitment, training, and development, business succession planning, and training for next-generation management team(junior boards), led to an increase in consulting contracts with the average number of contracts during the periodrising to 445, an increase of 11 versus the same period in FY3/17. At its sales promotion consulting business, theCompany saw strong growth on wins of large consulting contracts covering everything from promotion and branding
strategy formulation to strategy execution support, and also including the high value-added services of its sales
promotion design team (which specializes in the design of premium novelty goods).
2. FY3/18 outlook
The Company made no change to its full-year forecast for net sales of ¥8,550mn (+1.9% YoY) and ordinary profit of¥945mn (+3.3%). However, with demand for consulting services still running in Q3, it is highly likely, in our view, theCompany will finish the year ahead of its current forecast. In this relation, we note that the Company has increased
the range of strategic domains and management topics it covers at its seminars, and now offers seminars on a total of
25 different topics versus 20 the previous year. As these seminars are attended by people from companies that havea serious interest in the subject covered at a specific seminar, they are a good place for Tanabe consultants to makecontact with potential clients. By increasing the range of seminars offered and the number of seminars, Tanabe will
increase the number of opportunities it has to make contact with potential clients, which in turn should lead to moremanagement consulting contracts. New consulting services the Company is counting on to help drive growth in the
future include support services for establishing FCC academies (corporate universities), which began in earnest thisfiscal year, and web promotion consulting, which will start up during the second half of the current fiscal year. The
Company is also planning to make use of its extensive ties with regional financial institutions and other members of
its alliance partner network to help it expand in the areas of growth-oriented M&A consulting and alliance consulting.

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01 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Summary

3. Medium-term outlook
Along with its medium-term business strategy of promoting the previously mentioned C&C strategy, the Company
is strengthening its recruitment and training of consultants. It plans to increase consultant numbers from 215 at theend of FY3/17 to 254 by the end of FY3/20. In order to acquire highly professional and skilled human resources, itwill fully launch a new personnel evaluation system from FY3/19 and thereby shift to evaluations that place greater
emphasis on professionalism. And, because there is a growing need for consulting services related to products andservices targeted at women, the Company also intends focus on hiring and training more female consultants. Under
its current medium-term business plan, Tanabe is targeting net sales of ¥9,000mn and ordinary profit of ¥1,000mn
in FY3/20. However, if the Company is able to expand steadily in growth-oriented M&A consulting and other new
areas, we believe there is a good chance it will surpass these targets.
4. Shareholder return policy
As its policy to return profits to shareholders, the Company pays dividends and also provides gifts to shareholders.
Its benchmark for dividends is a payout ratio of 60% and it determines the dividend while considering results andother factors. In FY3/18, it plans to increase the dividend by ¥1.0 to ¥41.0 (for a payout ratio of 55.1%), for thesixth consecutive fiscal year of higher dividends. It also intends to continue to increase sales, profits and dividends
in the future. In addition, the Company provides a gift to shareholders on record as of the end of September of its
original Blue Diary scheduler (worth about ¥3,000). The dividend yield was about 2.3% and the investment return
was around 4% including the shareholder gift, based on the share price of January 30, 2018 (¥1,796).
Key Points
1H sales and earnings finish up YoY and ahead of initial forecast, Company sees full-year sales and earnings
rising on the back of continued growth in demand for consulting services• Pushing ahead with its C&C strategy, the Company sees growth being driven by consulting in new areas
including support for establishing FCC academies (corporate universities), web promotion consulting, growthoriented M&A consulting, and business alliance consulting• Strengthening recruitment of consultants for a variety of consulting domains and training professional consultants•㻼㼑㼞㼒㼛㼞㼙㼍㼚㼏㼑㻌㼠㼞㼑㼚㼐㼟㻔¥㼙㼚㻕㻺㼑㼠㻌㼟㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻕㻻㼞㼐㼕㼚㼍㼞㼥㻌㼕㼚㼏㼛㼙㼑㻌㻔㼞㼕㼓㼔㼠㻕㻝㻜㻘㻜㻜㻜

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Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

02 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/██Business overview
Creation of the first call company(that will be selected even one hundred years from now)
through “business x organization x region team consulting”
1. Company overview
The Company, which was founded in Kyoto in 1957, is a pioneer and a major presence in Japan for management
consulting for medium-sized companies and SMEs. It aims to achieve sustainable growth together with its customers
by providing them with new consulting value through promoting its C&C strategy (a strategy for the diversification ofbusiness domains). Its corporate mission is to “assist in the creation of the first call companies” that will be selected
first even 100 years from now through creating more value even as a single company.
Criteria for becoming a first call company• Constantly pursue customer value (management that cultivates modesty to identify customer value and strengths)• Create a number-one brand business (number-one strategy model for creating brand business)• Determination to establish robust corporate capabilities (ordinary income margin of 10% or more with debt-free operations)• Free and broadminded organization (teams that can self-reform and organization that leverages development capabilities)• Management technique for business succession (100-year management that passes along corporate spirit to the next generation)
Source: Prepared by FISCO from the Company’s results briefing materials

As a strategic partner, the Company provides consulting services for customers nationwide for the full scope of
their management needs, from formulating business strategies to organizational design, building management
systems, and developing next-generation management operations, as well as human resource training consulting,from executives and business successors through to new recruits, and also SP consulting. It is characterized by its
provision of “team consulting” in which it selects the optimum number of specialist consultants and forms them into
a team in accordance with the issues facing the customer, from the viewpoint of “business x organization x region.”
It conducts its business from its bases in 10 major cities nationwide, from Hokkaido to Okinawa. The features andstrengths of the Company include that, within its industry, only it conducts a nationwide business and only it can
provide consulting services tailored to each specific region. Also, in April 2017 it raised the status of the Tokyo
Headquarters to the Tokyo Head Office. By establishing a dual head office structure with the Tokyo Head Office
responsible for IR and PR, recruitment, and M&A functions, as well as the Strategic Comprehensive Institute, whichplans and produces various consulting services, analyzes information from consulting sites and elsewhere, anddisseminates information to member companies and society, the Company is aiming to supplement its customer
service nationwide and achieve further growth.

We encourage readers to review our complete legal statement on “Disclaimer” page.

03 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Business overview

2. Business details
The Company has two business segments, the management consulting business and the SP consulting business.
In terms of percentages of net sales (FY3/17), the management consulting business provides 56.2% and the SP
consulting business 43.8%. In the last few years, it has focused on consulting domains with high added-value in
the SP consulting business also, and this segment’s operating profit is rising.

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Source: Prepared by FISCO from the Company’s financial results and results briefing materials

The Company’s business model starts with client development. Here, the Company mainly targets medium-sized
and smaller companies through a variety of means including online advertising, direct mailings, referrals fromfinancial institutions, and new client sales initiatives. Some of these activities resulted in winning subscription ofmember services, such as its email magazine, digital education services, and its FCC REVIEW magazine (covering
management-related topics). By conducting seminars on various strategic domains and management topics, Tanabe
is also able to attract potential client companies that are facing these particular management issues and thesecontracts often lead to team consulting contracts (with the team including specialists in management consulting,human resource development, and sales promotion). Ultimately, Tanabe’s aim is to get clients to use its various
consulting services and become the “first call companies.” Thanks in part to its efforts in recent years to broaden
the range of topics covered by its strategic domains and management seminars, Tanabe currently gets about 70%
of its new client from the ranks of those attending one of its FCC workshops or seminars. Between 20% and 30%of the remaining new clients are acquired through referrals from financial institutions and roughly 10% are acquiredby other means.

We encourage readers to review our complete legal statement on “Disclaimer” page.

04 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Business overview

Client development model

Source: The Company’s results briefing materials(1) Management consulting business
Under its management consulting business, the Company breaks down sales into the following categories:
management consulting, human resource development consulting (including customized education programs andhuman resource development programs for alliance partners such as partner financial institutions and accounting
firms), seminars (targeting audiences from current managers, to next-generation managers, all the way to new
employees), FCC workshops (workshops covering various strategic domains and management topics, “first callcompany” executive groups), and alliances. Of these, management consulting services account for more than
50% of segment sales.
Tanabe’s management consulting services are aimed mainly at medium-sized and smaller companies, and addressa broad range of strategic and management issues including medium-term management plan (vision) formulationand implementation, personnel recruitment, training, and development, business succession planning, and training
next-generation management teams (junior boards). In response to the growing needs for M&A consulting services
among client companies looking to diversify, Tanabe has recently added a full-fledged M&A consulting service toits service menu and is looking to further expand its consulting business in growth-oriented M&A with the help ofreferrals from its extensive network of alliance partners among Japanese financial institutions.

We encourage readers to review our complete legal statement on “Disclaimer” page.

05 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Business overview(2) SP (sales promotion) consulting business
The Company’s sales promotion consulting business includes sales promotion consulting (covering everythingfrom helping clients establish promotion strategies to support for the execution of those strategies, as well as
SP designs by consultants specializing in premium novelty goods), the planning and sales of SP tools (novelty
goods created by adding the client company’s name to a standard item), the planning and sales of “diaries”(business planners, calendars). Tanabe is currently working with over 3,000 companies (providing services as wellas promotional goods) that are looking to boost their brand image, including not only medium-sized and smaller
companies but also large companies as well.
Recently, it has been focusing on consulting targeting “the children and child-rearing families markets,” andthe needs of customer companies are great from the viewpoints of the possibilities for this market, in whichcustomers can be expected to be customers in other domains in the future, and also for CSR. It is also planning
full-fledged web promotion consulting for BtoB companies in regions with branding problems. Furthermore, itis progressing alliances with the management consulting business, in which management consultants support
customer companies’ business and organization strategies while SP consultants support the development of
product sales channels, branding and a corporate identity. While management consulting remains the mainstay
business, a strength of the Company is that, unlike other consulting companies, it is equipped with design andsales functions, enabling it to provide SP consulting.
In the SP consulting business, diary sales, which constitute approximately 30% of total sales, are concentratedin Q3, so the quarterly revenue trend in a typical year peaks in Q3.

We encourage readers to review our complete legal statement on “Disclaimer” page.

06 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Business overview

Description of the SP consulting business

Source: Company materials

We encourage readers to review our complete legal statement on “Disclaimer” page.

07 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.

27-Feb.-20189644 Tokyo Stock Exchange First Section

http://www.tanabekeiei.co.jp/t/ir/██Result trends
Underpinned by rising demand for consulting services,
sales and earnings continue to rise
1. FY3/18 1H results overview
In the FY3/18 1H results, net sales increased 6.9% YoY to ¥3,947mn, operating profit rose 5.0% to ¥426mn, ordinary
profit grew 2.5% to ¥442mn, and net profit increased 2.8% to ¥303mn. Each result exceeded the initial Company
forecast, and this was the sixth consecutive half of higher sales and profits.
FY3/18 1H results(¥mn)
FY3/17 1H

FY3/18 1H

Results

Ratio to sales

Forecast

Results

Ratio to sales

YoY

vs. forecast

Net sales

3,692

100.0%

3,750

3,947

100.0%

6.9%

5.3%

Gross profit

1,835

49.7%

-

1,963

49.8%

7.0%

-

SG&A expenses

1,428

38.7%

-

1,537

38.9%

7.6%

-

Operating profit

406

11.0%

320

426

10.8%

5.0%

33.4%

Ordinary profit

431

11.7%

330

442

11.2%

2.5%

34.2%

Net profit

295

8.0%

225

303

7.7%

2.8%

34.8%

Note: Based on the Company’s initial forecast
Source: Prepared by FISCO from the Company’s financial results

Aided by the slow-but-steady recovery in the domestic economy, 1H net sales finished up 5.8% YoY at the
management consulting business and were up 9.0% at the sales promotion consulting business. Driving growthat the management consulting business was growing demand for consulting in the areas of business strategy,
business succession planning, and human resource development. Sales promotion consulting benefited from an
ongoing increase in companies looking for expert advice and assistance to grow sales and improve their branding.
Operating profit rose 5.0% as benefits stemming from strong top-line growth absorbed expenditures for recruiting
new consultants, investments in IT, and other strategic investments. As of the end of September 2017, the Company
had a total of 330 employees, an increase of 26 over September 2016.
2. Segment trends(1) Management consulting business
The management consulting business posted 1H net sales of ¥2,544mn (+5.8% YoY) and segment profit of¥705mn (+4.8%). Both sales and segment profit were above plan, though the segment profit margin slipped
0.3ppts as personnel expenses rose in conjunction with recruitment (including human resource development
consultants), increasing the number of employees by 8 to 163 at the end of September 2017.

We encourage readers to review our complete legal statement on “Disclaimer” page.

08 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Result trends㻹㼍㼚㼍㼓㼑㼙㼑㼚㼠㻌㼏㼛㼚㼟㼡㼘㼠㼕㼚㼓㻌㼎㼡㼟㼕㼚㼑㼟㼟㻔¥㼙㼚㻕㻺㼑㼠㻌㼟㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻕㻿㼑㼓㼙㼑㼚㼠㻌㼜㼞㼛㼒㼕㼠㻌㻔㼘㼑㼒㼠㻕㻼㼞㼛㼒㼕㼠㻌㼙㼍㼞㼓㼕㼚㻌㻔㼞㼕㼓㼔㼠㻕

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Source: Prepared by FISCO from the Company’s financial results

Within the management consulting business, the Company posted a solid 3.5% increase in sales for its mainstay management consulting services. In addition to a steady flow of new consulting contracts for work on
medium-term management plan (vision) formulation and implementation, personnel recruitment, training, anddevelopment, business succession planning, and next-generation management team training, the Company did
more consulting work in other areas such as consulting support for the establishment of academies (corporate
universities), business model design, branding, and redesigning workflows (to boost productivity). This boosted
the average number of management consulting contracts during the period to 445, up 11 versus the same period
the previous year and a new high for the Company.
Sales from human resource development consulting rose 9.0% YoY, driven by growing demand among clientcompanies for the training of future executives and customized workshops for current executives. The Company’s
alliance partners among financial institutions and accounting firms also contracted for additional employee training
to give their people the consulting skills necessary to help the companies they finance and advise grow andprosper.
Sales from business seminars rose 9.0% YoY as the number of participants rose as a result of the opening of
new venues for Tanabe’s Startup Academy for new employees in April 2017 and the opening of several more
new venues for its Team Leader School between July and September. With help from the opening of these newvenues, the number of companies participating in Tanabe’s seminaries rose to 2,506, an increase of 320 over thesame period of the previous year.
Sales from FCC workshops continued to growth at a rapid pace, rising 17.0% YoY, though are still relatively
small. The growth was aided by the addition of three more topics (on leading-edge technologies, new businessdevelopment, and the education/tutorial business) to its series of seminars on strategic domains and management
topics, which together with the existing lineup of topics increased the total number of workshops held during
the period. People from a total of 761 different companies attended the workshops held during 1H. This was anincrease of 61 companies over the same period the previous year, contributing not only to the sales in this area
but also leading to a number of new management consulting contracts.

We encourage readers to review our complete legal statement on “Disclaimer” page.

09 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.

27-Feb.-20189644 Tokyo Stock Exchange First Section

http://www.tanabekeiei.co.jp/t/ir/

Result trends

Sales from alliance services declined 3.3% YoY as efforts to provide management workshops to the financial
institutions and accounting firms that are already alliance partners and provide new, original training programs
and services designed to support medium-sized and smaller companies were offset by a decline in the numberof alliance partner companies, which declined by 5 to 143. Sales were also hurt by a decline in the number ofmembers in various organizations subscribing to Tanabe’s magazine that cover various management-related topics.
(2) SP (sales promotion) consulting business
The sales promotion consulting business posted 1H sales of ¥1,403mn (+9.0% YoY) and a segment loss of ¥50mn
versus a ¥96mn loss during the same period in FY3/17. As diary sales are highly seasonal and concentrated in
the October–December quarter (Q3), it is normal for the sales promotion consulting business to post a loss for the
first half of the fiscal year. That said, the fact that loss in 1H was smaller this year tells us the segment’s profitability
is improving as it builds up its consulting business in this area. At the end of September 2017, the segment had
62 consultants versus 61 at the end of September 2016.

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㻔¥㼙㼚㻕
㻝㻘㻡㻜㻜

㻿㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻕㻝㻘㻟㻟㻡㻿㼑㼓㼙㼑㼚㼠㻌㼜㼞㼛㼒㼕㼠㻛㼘㼛㼟㼟㻌㻔㼘㼑㼒㼠㻕

㻝㻘㻠㻜㻟

㻝㻘㻞㻤㻣

㻜㻚㻜㻑

㻙㻟㻚㻢㻑

㻝㻘㻜㻜㻜

㻡㻜㻜

㻜

㻼㼞㼛㼒㼕㼠㻌㼙㼍㼞㼓㼕㼚㻌㻔㼞㼕㼓㼔㼠㻕

㻙㻟㻚㻜㻑

㻙㻢㻚㻜㻑

㻙㻣㻚㻡㻑
㻙㻝㻟㻢

㻙㻥㻚㻜㻑
㻙㻥㻢

㻙㻡㻜

㻲㼅㻟㻛㻝㻣㻌㻝㻴㻲㼅㻟㻛㻝㻤㻌㻝㻴㻙㻝㻜㻚㻞㻑
㻙㻡㻜㻜㻙㻝㻞㻚㻜㻑
㻲㼅㻟㻛㻝㻢㻌㻝㻴

Source: Prepared by FISCO from the Company’s financial results

Within the sales promotion consulting segment, revenues from sales promotion consulting work was up 31.2%
YoY. In addition to working extensively with client companies participating in the nationwide “Kodomo ga Mannaka(Focus on Children) Project” and making promotion proposals for this market, the business was also able steadily
grow the number of contracts for sales promotion consulting with the help of collaboration the Company’s
management consulting business. The success of many high value-added sales promotion design proposals
also helped to boost the top line as it served to win large-scale projects.
Sales of SP tools (novelty goods created by adding the client company’s name to a standard item) finished down
14.6% YoY. The Company said there were still many repeat orders but that its efforts to convince client companies
to switch to higher value-added designs was responsible for the decline in sales of SP tools.

We encourage readers to review our complete legal statement on “Disclaimer” page.

10 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Result trends

Sales of “diaries” (business planners, calendars) were up 26.8% YoY despite 1H being the slow season in whichsales are inherently small. Even though sales of business planners were flat, it was corporate calendars that drove
sales growth during the period. During 1H the Company also moved ahead with the rebranding of its Blue Diary
to mark the popular scheduler’s 60-year anniversary in 2019 and, in conjunction with this, the Company alsochanged its logo, the production of its branding book, and gave its website a new look.
3. Financial position and management indicators
At the end of FY3/18 1H, the Company’s balance sheet showed total assets of ¥12,332mn, a ¥198mn decline versus
the end of FY3/17. The major drivers behind the decline were a ¥393mn decline cash/deposits and marketablesecurities to facilitate payment of the dividend on the Company’s common stock. This reduced the balance of current
assets, but there was also a ¥30mn decline in non-current assets stemming from the sale of investment securities.
This brought down the combined value of cash/deposits and securities holdings by ¥423mn, to ¥7,998mn, or
64.9% of total assets.
Total liabilities of ¥2,269mn were down ¥139mn versus the end of FY3/17. Under current liabilities we find a¥60mn decline in accounts payable and ¥58mn decline in income taxes payable. Under non-current liabilities wefind a ¥10mn increase in provision for directors’ retirement benefits. The combined impact of this left net assets at¥10,062mn, down ¥59mn versus the end of FY3/17. With ¥303mn in net profit versus ¥346mn in dividend paid tocommon stockholders, retained earnings declined by ¥43mn. The rest of the decline in net assets reflected a ¥18mn
decline in valuation difference on available-for-sale securities.
With the equity ratio above 80%, at 81.6%, and no interest-bearing debt on its balance sheet, the Company still
has an extremely strong financial position. Profitability is also high and very stable, with the 1H operating margin
holding comfortably above 10%, at 10.8%.
Balance sheet(¥mn)
From end of
previous fiscal
year

F3/15

F3/16

F3/17

F3/18 1H

Current assets

5,960

6,967

6,911

6,665

-246

(Cash/deposits and marketable securities)

5,016

6,021

5,984

5,591

-393

Non-current assets

5,832

5,118

5,620

5,667

47

(Long-term time deposits and investment securities)

2,640

1,977

2,437

2,407

-30

Total assets

11,792

12,086

12,531

12,332-198

Current liabilities

1,697

1,682

1,844

1,682

-162

542

570

564

587

22

Total liabilities

2,240

2,253

2,409

2,269

-139

Net assets

9,552

9,833

10,122

10,062-59

Equity ratio

81.0%

81.4%

80.8%

81.6%

ROA

7.0%

7.4%

7.4%

-

ROE

3.3%

6.0%

6.4%

-

Operating margin

9.7%

10.3%

10.5%

10.8%

Non-current liabilities(Management indicators)

Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

11 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/██Business outlook
Expect higher sales and earnings for the full year,with both above finishing above plan
1. Outlook for FY3/18
The Company has made no changes to its original forecast for the full fiscal year, and is still forecasting net salesof ¥8,550mn (+1.9% YoY), operating profit of ¥915mn (+4.1%), ordinary profit of ¥945mn (+3.3%), and net profit of¥645mn (+1.1%). It is highly likely, in our view, that sales and earnings will exceed the Company’s forecast as demandfor consulting services are still running strong and there have been no real changes in the market environment since
the start of Q3. We also note that sales and earnings were running ahead of where they usually are at the end of
1H, with 1H sales equal to 46.2% of the Company’s full-year target and operating profit equal to 46.7% versus
the average over the past five years of 43.3% and 41.3%, respectively. On the expense front, the Company hasbudgeted another ¥200mn for personnel expenses over last year to reflect its plans to continue hiring new employees
to serve as consultants.
FY3/18 outlook(¥mn)
FY3/17

FY3/18Full-year
results

YoY

1H results

YoY

Full-year
forecast

YoY

8,389

1.1%

3,947

6.9%

8,550

1.9%

Management consulting business

4,711

4.7%

2,544

5.8%

4,820

2.3%

SP consulting business

3,677

-3.2%

1,403

9.0%

3,730

1.4%

Gross profit

3,931

2.1%

1,963

7.0%

4,155

5.7%

SG&A expenses

3,052

1.9%

1,537

7.6%

3,240

6.1%

Operating profit

878

2.6%

426

5.0%

915

4.2%

1,261

-

705

4.8%

1,270

0.7%

SP consulting business

157

-

-50

-

165

5.1%

Headquarters management costs

-540

-

-227

-

-520

-

915

3.3%

442

2.5%

945

3.3%

638

9.6%

303

2.8%

645

1.1%

Net sales

Management consulting business

Ordinary profit
Net profit
Earnings per share (¥)

73.66

35.02

74.45

Source: Prepared by FISCO from the Company’s financial results
The YoY change in segment profit has not been calculated for FY3/17 owing to changes in the method used to allocate corporate overhead.

At its management consulting business, the Company sees demand continuing to grow in 2H particularly in the areasof support for establishing FCC academies (corporate universities), productivity enhancement consulting, businessmodel design consulting, and next-generation management support consulting. In the area of human resource
development consulting, the Company also expects to see continued growth in demand for customized executive
education programs for current and next-generation managers. At its FCC workshops, the Company is adding
additional workshops to cover new strategic domains and management topics. With the addition of workshops infinancial institutions, food sales promotion, and housing market promotion, the Company will be offering workshops
on a total of 25 different topics with the ultimate goal of connecting with potential clients and bringing in moreconsulting contracts. On the expense front, the Company expects personnel-related expenses to continue to riseas it continues making new hires for its consulting businesses.

We encourage readers to review our complete legal statement on “Disclaimer” page.

12 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Business outlook

Expanding topics for the C&C strategy’s domain and function workshops

Source: The Company’s results briefing materials

At its sales promotion consulting business, the Company sees more contracts for its mainstay sales promotion
consulting services coming in thanks to closer coordination with its management consulting arm and, in the area ofsales promotion design work, is looking to increase sales of promotion tools that incorporate more original design
work. With regard to SP tools, as the Company intends to focus more on high value-added promotion tools thatmake use of its design services, overall sales of SP tools are expected to continue to decline. In contrast, diarysales are expected to grow in response to the Company’s rebranding of its popular Blue Diary. Meanwhile, on the
expense front, the Company sees lower costs stemming from efficiency gains underpinning further improvementsin the profit margin.

Realizing sustainable and stable growththrough four priority measures
2. Business strategy
As the Company pursues continued growth over the medium term, its business strategy will focus on the following
four areas.
(1) Promoting the C&C (Consulting and Conglomerate) strategy
The Company will continue to promote the C&C strategy as the core of its growth strategy. In addition to
expanding domain (business strategy) and function (organization strategy) workshop topics, it will focus on
consulting in the areas of support for establishing FCC academies (corporate universities), marketing to capture
customers in the children and child-rearing families markets, and web promotion consulting.
The range of topics covered by the Company’s domain and function workshops will be expanded in the year
ahead, with most of the new topics related to solutions for future societal problems or areas where future growth
can be expected. More specifically, during FY3/19 the Company plans workshops on the apparel industry andon digital technology services. As always, the Company’s underlying strategic aim in running these workshops is
to create a setting that will lead to more consulting contracts.

We encourage readers to review our complete legal statement on “Disclaimer” page.

13 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Business outlook

In consulting to support the establishment of FCC academies (corporate universities), the Company supports the
speedy establishment of a corporate university for each customer company through building an education system,
introducing a cloud education system, and providing workshop services and seminars. A feature of its cloud
education system is that in addition to more than 80 educational tracks created by the Company’s consultants,
it utilizes the talent at the customer companies to digitize the expertise of excellent employees and technicians.
Since everyone can use smartphones, tablets and other digital devices to study anywhere and at any time, thissystem reforms working by revolutionizing learning. As a result, regardless of their industry, scale, or region,
companies can quickly establish a corporate university. For medium-sized companies and SMEs, having theirown corporate university (human resource training program) also proves beneficial in PR for recruitment activities,
and many companies have indicated their intention to introduce it. It has already been adopted by 30 companies,
and the Company is aiming for 100 companies at an early stage.
In consulting for marketing to capture customers in the children and child-rearing families markets, the Company
is participating in the “Kodomo ga Mannaka (Focus on Children) Project,” in which approximately 8,000 nationwide
private kindergartens are involved. It is acting exclusively as a bridge between the kindergartens and companies
and providing companies with total support, from the planning and proposals of promotions and the developmentof contents and products, through to support for the implementation of promotions. The scale of the children andchild-rearing families market is around 3.19 million people, including children in kindergartens, PTA members,
and teachers and staff, and for companies it is an area in which the effects of promotions are high. Moreover, an
increasing number of companies are joining the project as part of their CSR initiatives. Therefore, the Company
will actively work to capture orders from such companies going forward, which will lead to an increase in SP
consulting sales.
The Company also started to offer a new consulting service for web promotion under its sales promotion consulting business in the latter half of FY3/18. Partnering with Google Japan G.K. and Yahoo Japan Corporation<4689>, Tanabe will analyze existing web trends with the aim of helping client companies design the most effective
web promotion for their business. Towards this end, the Company plans to hire more personnel with expertise indesigning and creating web pages and websites, copywriting, and other Internet-related skills. With regard to its
target market for these services, while many companies operating in Japan’s major metropolitan areas alreadyhave web promotion initiatives in place, the Company notes that regional B2B companies are far less advanced inthis area and many do not even have an in-house web specialist. With its extensive network of consulting offices
stretching all the way from Okinawa to Hokkaido, Tanabe is looking to take advantage of its strong regional ties
and focus on developing web promotion consulting clients among regional companies.
Web promotion consulting

Source: The Company’s results briefing materials

We encourage readers to review our complete legal statement on “Disclaimer” page.

14 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Business outlook(2) Promoting the domain strategy
Within the domain and function workshop topics, the Company has incubated as business units (establishedspecialist departments within the Tokyo Head Office) the three fields of “food and food services,” “healthcare,”and “home and lifestyle” that customer companies are highly interested in. In the future, it will develop methods ofsolving highly specialized problems in each of these fields. While enhancing the contents menu and increasing thenumber of consultants, it will build a structure that makes it easy to provide customers with support nationwide,
which will lead to an increase in the number of management consulting contracts. Currently, Tanabe has fewer
than 10 full-time consultants in these three areas combined.
(3) Promoting the alliance strategy
With regard to its alliance strategy, Tanabe has long been providing educational services to some 100 financial
institutions that are its alliance partners with the ultimate goal of creating opportunities to get consulting businessfrom some of the roughly 1.5mn medium-sized and smaller companies that these financial institutions count as
their customers. Tanabe is now looking to build on this and make additional partnership arrangements that will
help it expand its business in the area of M&A consulting. Tanabe has provided individual companies with M&A
consulting in the past, but it is now actively gearing up to push further into M&A consulting or, more specifically,
consulting on mergers and acquisitions that are aimed at helping the client company achieve its growth strategy,
using its network of partner financial institutions. In general, Tanabe is assuming that its consulting client will be theacquirer and that the target company will be found with the aid of one of its partner financial institutions. Tanabe
is looking to differentiate itself from competitors by becoming a one-stop shop for M&A consulting services,
providing support for everything from the initial formulation of the client company’s M&A strategy, to due diligence
research, to post-merger integration. Because regional banks are also anxious to diversify sources of income
and are already trying to get more involved in the M&A business, Tanabe believes that such a partnership willcontribute to earnings growth in the future.
(4) Promoting the regional FCC (first call consulting firm) strategy
The Company aims to build an integrated support structure in which management consultants, human resource
training consultants, and SP consultants are formed into one team that provides companies with total support,
from the development of their business, organization and human resources through to their promotion strategy,
branding strategy, and product development, and it is working to support the growth of regional medium-sizedcompanies and SMEs. It can be said in its industry, only the Company is able to implement this strategy, which
utilizes its strength of having 10 business bases nationwide.
3. Medium-term business plan
Each year, the Company announces the three-year rolling medium-term management targets. It has set the targets
for FY3/20 of net sales of ¥9,000mn, operating profit of ¥980mn, ordinary profit of ¥1,000mn, and net profit of¥680mn. Looking at the average growth rates up to FY3/20, it plans to achieve steady growth of 2.4% for net sales
and 3.0% for ordinary profit.
Looking at the average growth rates by business segment also, the forecasts are for steady sales growth of around
2% in both the management consulting business and the SP consulting business, and for operating profit growthof 2.8% in the management consulting business and 3.7% in the SP consulting business.

We encourage readers to review our complete legal statement on “Disclaimer” page.

15 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.

27-Feb.-20189644 Tokyo Stock Exchange First Section

http://www.tanabekeiei.co.jp/t/ir/

Business outlook

Numerical targets in the medium-term business plan(¥mn)
FY3/17

FY3/18 E

FY3/19 E

FY3/20 E

Three-year
average growth
rage

8,389

8,550

8,750

9,000

2.4%

Management consulting business

4,711

4,820

4,950

5,100

2.7%

SP consulting business

3,677

3,730

3,800

3,900

2.0%

878

915

950

980

3.7%

1,261

1,270

1,320

1,370

2.8%

SP consulting business

157

165

170

175

3.7%

Headquarters management costs

-540

-520

-540

-565

-

915

945

970

1000

3.0%

Net sales

Operating profit
Management consulting business

Ordinary profit

10.9%

11.1%

11.1%

11.1%

-

Net profit

638

645

660

680

2.1%

ROE

6.4%

6.4%

6.4%

6.3%

Ordinary profit margin

Source: Prepared by FISCO from the Company’s results briefing materials

As its key performance indicators, the Company focuses mainly on team consulting sales (total sales from management consulting, human resource development consulting, and sales promotion consulting) and the number of clientcompanies served. Under its medium-term business plan, the Company is targeting consulting sales of ¥3,340mn
and 550 client companies in FY3/20 versus sales of ¥3,076mn and 510 client companies in FY3/17. The growth inteam consulting sales is expected to come mainly from increases in the number of client companies and, towards
this end, Tanabe has set its sights on increasing the number of companies attending its workshops and seminars(on strategic domains and management topics) from 4,863 to 6,300. We believe Tanabe is being overly conservative
when it comes to its target for team consulting sales. Although the average annual growth of 2.8% is slightly above
the sales growth rate of the Company as a whole, in the last two years its team consulting sales have risen at an
average rate of 7.3% per annum and in 1H were up 5.1% YoY. Taking into further consideration the Company’s
expansion into new consulting areas, including consulting related to the establishment of FCC academies (corporate
universities), growth-oriented M&A consulting, and web promotion consulting, we believe team consulting sales
will surpass the target set out by the Company in its medium-term business plan. Moreover, the increases in teamconsulting sales will also serve to increase the Company’s overall profit margin.

㼀㼞㼑㼚㼐㼟㻌㼕㼚㻌㼠㼔㼑㻌㼠㼑㼍㼙㻌㼏㼛㼚㼟㼡㼘㼠㼕㼚㼓㻌㼏㼛㼙㼜㼍㼚㼥㻌㼚㼡㼙㼎㼑㼞㼟㻌㼍㼚㼐㻌㼚㼑㼠㻌㼟㼍㼘㼑㼟㻯㼡㼟㼠㼛㼙㼑㼞㻌㼎㼍㼟㼑【㼚㼛㻚㻌㼛㼒㻌㼏㼛㼙㼜㼍㼚㼕㼑㼟】 㻔㼘㼑㼒㼠㻕㼀㼑㼍㼙㻌㼏㼛㼚㼟㼡㼘㼠㼕㼚㼓㻌㼏㼛㼙㼜㼍㼚㼥㻌㼚㼡㼙㼎㼑㼞㼟㻌㻔㼘㼑㼒㼠㻕㼀㼑㼍㼙㻌㼏㼛㼚㼟㼡㼘㼠㼕㼚㼓㻌㼚㼑㼠㻌㼟㼍㼘㼑㼟㻌㻔㼞㼕㼓㼔㼠㻕㻔㼏㼛㼙㼜㼍㼚㼕㼑㼟㻕㻣㻘㻜㻜㻜㻟㻘㻝㻡㻜㻌

㻟㻘㻜㻣㻢㻌
㻢㻘㻜㻜㻜㻟㻘㻟㻠㻜㻌

㻞㻘㻤㻥㻤㻌

㻞㻘㻡㻜㻜㻢㻘㻟㻜㻜㻌

㻡㻘㻤㻡㻜㻌

㻡㻘㻠㻡㻜㻌

㻠㻘㻤㻢㻟㻌

㻠㻘㻜㻜㻜

㻞㻘㻜㻜㻜

㻠㻘㻜㻣㻣㻌

㻟㻘㻤㻣㻟㻌

㻝㻘㻡㻜㻜

㻞㻘㻜㻜㻜
㻝㻘㻜㻜㻜

㻟㻘㻡㻜㻜
㻟㻘㻜㻜㻜

㻞㻘㻢㻣㻠㻌

㻡㻘㻜㻜㻜

㻟㻘㻜㻜㻜

㻟㻘㻞㻡㻜㻌

㻔¥㼙㼚㻕

㻝㻘㻜㻜㻜
㻠㻢㻡

㻠㻣㻥

㻡㻝㻜

㻡㻞㻜

㻡㻟㻡

㻡㻡㻜

㻲㼅㻟㻛㻝㻡

㻲㼅㻟㻛㻝㻢

㻲㼅㻟㻛㻝㻣

㻲㼅㻟㻛㻝㻤㻌㻱

㻲㼅㻟㻛㻝㻥㻌㻱

㻲㼅㻟㻛㻞㻜㻌㻱

㻜

㻡㻜㻜

㻜

Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

16 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section

27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/

Business outlook㼃㼛㼞㼗㼟㼔㼛㼜㻛㼟㼑㼙㼕㼚㼍㼞㻌㼍㼠㼠㼑㼚㼐㼍㼚㼏㼑㻌㼍㼚㼐㻌㼠㼑㼍㼙㻌㼏㼛㼚㼟㼡㼘㼠㼕㼚㼓㻌㼟㼍㼘㼑㼟㻔㼔㼍㼘㼒㻙㼥㼑㼍㼞㻌㼎㼍㼟㼕㼟㻕㻺㼡㼙㼎㼑㼞㻌㼛㼒㻌㼏㼛㼙㼜㼍㼚㼕㼑㼟㻌㼍㼠㼠㼑㼚㼐㼕㼚㼓㻌㼣㼛㼞㼗㼟㼔㼛㼜㼟㻌㼍㼚㼐㻌㼟㼑㼙㼕㼚㼍㼞㼟㻌㻔㼘㼑㼒㼠㻕㼀㼑㼍㼙㻌㼏㼛㼚㼟㼡㼘㼠㼕㼚㼓㻌㼏㼛㼙㼜㼍㼚㼥㻌㼚㼡㼙㼎㼑㼞㼟㻌㻔㼘㼑㼒㼠㻕㼀㼑㼍㼙㻌㼏㼛㼚㼟㼡㼘㼠㼕㼚㼓㻌㼚㼑㼠㻌㼟㼍㼘㼑㼟㻌㻔㼞㼕㼓㼔㼠㻕
㻝㻘㻢㻟㻡
㻝㻘㻡㻡㻢
㻝㻘㻠㻠㻝

㻔㼏㼛㼙㼜㼍㼚㼕㼑㼟㻕
㻟㻘㻢㻜㻜
㻟㻘㻜㻜㻜

㻝㻘㻟㻜㻡

㻞㻘㻠㻜㻜

㻝㻘㻤㻜㻜
㻝㻘㻡㻜㻜

㻝㻘㻞㻜㻜

㻝㻘㻤㻜㻜
㻝㻘㻞㻜㻜

㻥㻜㻜

㻟㻘㻞㻢㻣

㻞㻘㻤㻤㻢

㻢㻜㻜

㻞㻘㻟㻡㻞
㻝㻘㻣㻝㻤

㻢㻜㻜

㻔¥㼙㼚㻕

㻠㻣㻞

㻠㻤㻡

㻡㻜㻝

㻡㻝㻥

㻲㼅㻟㻛㻝㻡㻌㻝㻴㻲㼅㻟㻛㻝㻢㻌㻝㻴㻲㼅㻟㻛㻝㻣㻌㻝㻴㻲㼅㻟㻛㻝㻤㻌㻝㻴

㻜

㻟㻜㻜
㻜

Source: Prepared by FISCO from the Company’s financial results

Personnel will be the key to growing sales, as much will depend how many new consultants Tanabe is able to hireand how quickly it can get them up and running. The medium-term business plan calls for increasing the size of theCompany’s consulting staff from 215 at the end of FY3/17 to 254 by the end of FY3/20. With 225 consultants at theend of FY3/18 1H, the Company is on track to meet its target of 234 consultants at the end of FY3/18 (representing
an increase of 19 consultants over FY3/17). Although Tanabe has sometimes struggled to find enough people for
consulting work in recent years, its decision to work with more personnel recruitment companies and step up its
own recruiting efforts appear to be meeting with success.
Going forward, Tanabe is especially looking for people to work in M&A consulting, web designers and creators,
and copywriters to support its web promotion consulting business, and also for consultants that want to work
long-term in more rural districts (either because they are interested in returning to the area where they grew up or
because they want to get out of the big city and enjoy life in the country). Growth in the markets for products andservices for women also means Tanabe will be hiring more female consultants, who will be important in bringing awoman’s point of view to certain types of consulting assignments involving products and services specifically for
women. Tanabe also intends to move to a new compensation system in FY3/19 in favor of a system based moreon skills and performance. The new system has already been applied to management consultants, and expansion
is deemed necessary to help the Company recruit and retain the type of employees that will be able to add value
to its growing businesses in the areas of human resource development consulting and sales promotion consulting.
With the change in its compensation system, the Company expects personnel expenses as a percent of sales torise slightly in the future. In this relation, we note that the growth rate currently projected for sales seems a bit low
given the planned increase in the consulting staff. This is due to a combination of the Company’s overly conservative
outlook for sales growth and the training time needed to bring new hires up to speed as consultants. Once the newconsultants are up and running, however, we expect to see the sales growth rate accelerate.

We encourage readers to review our complete legal statement on “Disclaimer” page.

17 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.
9644 Tokyo Stock Exchange First Section



27-Feb.-2018
http://www.tanabekeiei.co.jp/t/ir/㻺㼡㼙㼎㼑㼞㻌㼛㼒㻌㼏㼛㼚㼟㼡㼘㼠㼍㼚㼠㼟㻔㼜㼑㼛㼜㼘㼑㻕

㻹㼍㼚㼍㼓㼑㼙㼑㼚㼠㻌㼏㼛㼚㼟㼡㼘㼠㼍㼚㼠㼟㻴㼡㼙㼍㼚㻌㼞㼑㼟㼛㼡㼞㼏㼑㼟㻌㼠㼞㼍㼕㼚㼕㼚㼓㻌㼏㼛㼚㼟㼡㼘㼠㼍㼚㼠㼟㻿㻼㻌㼏㼛㼚㼟㼡㼘㼠㼍㼚㼠㼟

㻟㻜㻜
㻞㻡㻜

㻞㻟㻠
㻞㻜㻡

㻞㻜㻟

㻞㻜㻜
㻝㻡㻜

㻣㻡

㻣㻞
㻝㻟

㻝㻝㻣

㻝㻝㻤

㻲㼅㻟㻛㻝㻡

㻲㼅㻟㻛㻝㻢

㻞㻡㻠

㻞㻝㻡
㻢㻣

㻣㻜

㻣㻟

㻝㻥

㻞㻝

㻞㻟

㻝㻟㻣

㻝㻠㻤

㻝㻡㻟

㻝㻡㻤

㻲㼅㻟㻛㻝㻣

㻲㼅㻟㻛㻝㻤㻌㻱

㻲㼅㻟㻛㻝㻥㻌㻱

㻲㼅㻟㻛㻞㻜㻌㻱
㻔㼑㼚㼐㻌㼛㼒㻌㼜㼑㼞㼕㼛㼐㻕

㻢㻝
㻝㻣

㻝㻟

㻞㻠㻠

㻝㻜㻜

㻡㻜
㻜

Source: Prepared by FISCO from the Company’s financial results██Shareholder return policy
Aims to increase dividends based on a benchmark payout ratio of60%
Shareholder returns include dividends and shareholder gifts. Tanabe decides the dividend while taking into accountearnings and other factors (excluding extraordinary items) with a goal of a 60% of dividend payout ratio. It plans toraise the dividend by ¥1.0 to ¥41.0 (55.1% payout ratio) in FY3/18, for a sixth straight fiscal year, and to continue
lifting the dividend if profits expand.
It also provides a gift to shareholders on record as of end-September of its original Blue Diary scheduler (worth
about ¥3,000). Dividend yield worked out to about 2.3% and investment return comes to roughly 4% including theshareholder gift, based on the share price on January 30 (¥1,796).

We encourage readers to review our complete legal statement on “Disclaimer” page.

18 19

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Tanabe Management Consulting Co., Ltd.

27-Feb.-20189644 Tokyo Stock Exchange First Section

http://www.tanabekeiei.co.jp/t/ir/

Shareholder return policy㻰㼕㼢㼕㼐㼑㼚㼐㻌㼜㼑㼞㻌㼟㼔㼍㼞㼑㻌㼍㼚㼐㻌㼐㼕㼢㼕㼐㼑㼚㼐㻌㼜㼍㼥㼛㼡㼠㻌㼞㼍㼠㼕㼛㻰㼕㼢㼕㼐㼑㼚㼐㻌㼜㼑㼞㻌㼟㼔㼍㼞㼑㻌㻔㼘㼑㼒㼠㻕

㻔¥㻕

㻡㻜㻚㻜

㻰㼕㼢㼕㼐㼑㼚㼐㻌㼜㼍㼥㼛㼡㼠㻌㼞㼍㼠㼕㼛㻌㻔㼞㼕㼓㼔㼠㻕㻝㻜㻜㻚㻜㻑

㻥㻜㻚㻢㻑
㻟㻤㻚㻜

㻠㻜㻚㻜

㻠㻜㻚㻜

㻠㻝㻚㻜
㻤㻜㻚㻜㻑

㻟㻟㻚㻜
㻟㻜㻚㻜
㻞㻜㻚㻜

㻟㻜㻚㻜

㻡㻠㻚㻟㻑

㻡㻡㻚㻝㻑

㻢㻜㻚㻜㻑

㻡㻢㻚㻡㻑

㻟㻟㻚㻟㻑

㻠㻜㻚㻜㻑

㻝㻜㻚㻜

㻞㻜㻚㻜㻑

㻜㻚㻜

㻜㻚㻜㻑
㻲㼅㻟㻛㻝㻠

㻲㼅㻟㻛㻝㻡

㻲㼅㻟㻛㻝㻢

㻲㼅㻟㻛㻝㻣

㻲㼅㻟㻛㻝㻤㻌㻱

Note: The dividend payout ratio on a net profit basis excluding extraordinary factors was 62.2% in FY3/14 and 55.1% in
FY3/15.
Source: Prepared by FISCO from the Company’s financial results██Information security policy
Tanabe uses the Internet to convey various services to members and send all kinds of management data to thefinancial institutions and other companies that are its alliance partners. The information security measures theCompany has put in place to prevent system failure and quickly restore the system in case of a failure include firewalls
and other measures to strictly control and monitor outside access, enhanced authentication measures, antivirus
software, data backup systems, and server mirroring. To protect the client data on its system from unauthorizedaccess and leaks, Tanabe has a strict data management system using both hardware and software, and constantly
reminds employees about the importance of protecting client data.

We encourage readers to review our complete legal statement on “Disclaimer” page.

19 19

Disclaimer
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This report is based on information that we believe to be reliable, but we do not confirm or
guarantee its accuracy, timeliness,or completeness, or the value of the securities issued bycompanies cited in this report. Regardless of purpose,investors should decide how to use
this report and take full responsibility for such use. We shall not be liable for any result of its
use. We provide this report solely for the purpose of information, not to induce investment or
any other action.
This report was prepared at the request of its subject company using information provided
by the company in interviews, but the entire content of the report, including suppositions andconclusions, is the result of our analysis. The content of this report is based on informationthat was current at the time the report was produced, but this information and the content of
this report are subject to change without prior notice.
All intellectual property rights to this report, including copyrights to its text and data, areheld exclusively by FISCO. Any alteration or processing of the report or duplications of thereport, without the express written consent of FISCO, is strictly prohibited. Any transmission,
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The final selection of investments and determination of appropriate prices for investment
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FISCO Ltd.