Relo Holdings, Inc. Security Code: Fiscal Year 2012 (Ending March 31, 2013)

Transcription

1 Relo Holdings, Inc. Security Code: 8876 Company Profile Fiscal Year 2012 (Ending March 31, 2013)

2 Company profile Company name Company profile Relo Holdings, Inc. History 1967 March Be established Security code 8876 Listed market Location (Headquarter) Management Year established 1967 The first section of Tokyo Stock Exchange Shinjuku, Shinjuku-ku, Tokyo Kenichi Nakamura, President Employees 826 (as of March 2012) Core business domain Mission Corporate fringe benefit management outsourcing service To support corporations and its employees to be free from care and anxiety, and allow them to perform at their full potential though our products and services. Accordingly, we will contribute to grow Japan May 1993 September Launches relocation house rental management service Launches Relo Club fringe benefit membership club 1999 September Goes public (JASDAQ) 2001 March 2001 August 2002 April 2005 June Begins Point Vacation Relo timeshare resort business Launches Club-Off Alliance CRM outsourcing service Launches Reliance corporate housing rental management outsourcing service Launches global relocation support service 2009 September Begins hotel management business 2010 January 2011 November Begins residential property management service Be listed on the first section of Tokyo Stock Exchange 2

3 Trended historical financials Most of our revenue comes from stable businesses which have recurring revenue streams, including Reliance corporate housing rental management outsourcing service, Relo Club fringe benefit management outsourcing service and our original business, relocation house rental management service, which we launched in By creating new outsourcing services to resolve various challenges on corporate fringe benefits that human resources department faces, and growing these stable business foundations, we have achieved 12 consecutive years of record revenues. Billion yen Consolidated income FY2011 (Compared to FY1998) Financial crisis Billion yen Revenue Recurring Profit 113 billion yen (8 times) 6 billion yen (11 times) ( Forecast) Recurring profit has gone up more than tenfold 3

4 Market Average spending for corporate benefits has been increasing even during the Japanese recession. Corporate fringe benefit has become one of the essential factors in Japan to recruit and retain employees. After the Japanese financial reform in 1990 s corporations promoted disposal of idle assets and the demand for outsourcing has increased. Recent intense global competitions force Japanese corporations to be leaner. It further accelerates outsourcing their noncore operations. Average spending on non-mandatory benefits FY2010: 25,583 Thousand yen % 25,583 per month, per employee <Average spending on non-mandatory benefits> Leisure & Life support 13,140 Housing 12,443 Booming Economy Heisei Recession Financial Crisis * FY th Corporate benefit research (Research: Nippon Keidanren) Corporate fringe benefit has become one of the key factors in Japan to recruit and retain employees. 4

5 Business segments and services We provide comprehensive outsourcing services on corporate fringe benefits How can I make good use of my vacant house, while temporarily transferred? In 1984, we have launched the first Relocation house rental management service in Japan to solve this issue that the large number of Japanese transferees were facing. In the process of expanding the business which helps transferred employees, we built a broad network with HR and Admin department. Over the years of our experience we have learned their challenges, gaps and inefficiency on corporate fringe benefits that companies face. Since then, Relo has expanded its businesses as a solution provider for Corporate Japan. Fringe Benefit Domestic Relocation Relo Club Fringe benefit membership club Club-Off Alliance CRM outsourcing Smile Ranger RELO24 Hotel management Point vacation Relo Timeshare resort Leisure & Life support Housing Reliance Corporate housing rental management Corporate housing property management Residential property management Relocation house rental management Global relocation support Serviced apartments Resort Global Relocation 5

6 Business segments Domestic Relocation Domestic Relocation Segment provides outsourcing services specialized in housing field of corporate fringe benefit, e.g. corporate housing and dormitories. Offering corporate houses to employees has been common among Japanese corporations and considered as a necessary ingredient of employee benefits today for various reasons including tax benefits. Meanwhile, time consuming operation of those corporate housing is a heavy burden for those companies. Full-service outsourcing service which helps to manage corporate housing leases, Reliance, and employee transfer support system which helps clients save time and costs on finding their residents and move, Relo-Net, are only a few examples of our well-reputed solutions to lighten the burden and make them more productive. We also provide property management and brokerage service in areas where demand for corporate housing is high. This array of broad services meets various needs and helps clients optimize their operations. (Million ) (Million ) 6

7 Business segments Global Relocation Global Relocation Segment provides broad relocation services assisting both companies and employees with overseas assignments and transfers. Relo group started relocation house rental management service, specialized rental property management service for vacated houses which transferred employees leave, in1984 as our first business in relocation business field. Over the several decades it has since grown into an integrated relocation service. Our integrated solutions includes relocation policy development and review, web-based implementation processes management, visa application, international moving arrangement. Our overseas operations, including serviced apartments and brokerage service and more, also ensures smooth transitions. Relo group is a leading company providing a seamless service from preparation to return home, designed to make both companies and employees most efficient throughout the process. (Million ) (Million ) 7

8 Business segments Fringe Benefit Fringe Benefit Segment provides outsourcing service specialized in leisure and life improvement categories of corporate fringe benefit. Demand for offering life improvement menus, including child care, medical checkup, gym, education etc. as a part of fringe benefit is becoming quite high as well as leisure houses and facilities which large corporations in Japan has been offering to employees traditionally for decades. Fringe benefit has been an essential part of compensation system, while it is expected to be more cost effective. Fringe benefit membership club Relo Club provides various fringe benefit menus (resort hotels, gyms, leisure facilities, child care services, etc.) and operation services (booking, customer care, etc.), helping member companies to increase employee satisfaction and also save costs and time. Using the extensive network with the service providers which Relo Club has built over the years, we also provide royalty programs Club Off Alliance to client companies which enables individual members to enjoy discounts on more than 75,000 qualified leisure and life improvement menus. (Million ) (Million ) 8

9 Our services Reliance (Corporate housing rental management) One of our core services Reliance is a corporate housing rental management outsourcing service launched in Financial crisis in 1990 s drove a large number of Japanese corporations to sell off corporate owned housings & dormitories and compensated them with a new system Kariage-shataku which means companies rent apartments for their employees under the company names. It requires the companies a great amount of cost and work load to manage them. (e.g. listed below) Reliance takes over all the burdens to manage the rented corporate housings. Outsourcing the operation and replacing the contracts allow corporations to reduce most of the work load and enables them to focus on their core businesses. Review & sign contracts Pay deposits and rents Dealing with complains Corporation When vacating Assess & judge if normal wearand-tear or damage Evaluate reasonable deposit refund, and negotiate Review & sign contracts Pay deposits and rents Dealing with complains Corporation Single contract When vacating Assess & judge if normal wearand-tears or damages Evaluate reasonable deposit refunds, and negotiate 9

10 Our services Relo Club (Fringe benefit membership club) One of our core services called Relo Club is a fringe benefit management outsourcing service launched in Large companies used to have their own resort houses and facilities as one of their employee benefits. However, majority of small & midsized companies were not able to afford them. In order to fill the gap, Relo launched Relo Club helping small & midsized companies enrich their benefits for affordable price. It provides various fringe benefit menus (resort hotels, gyms, leisure facilities, child care services, etc.) and operation services (booking, customer care, etc.). Member companies can increase employee satisfaction and also save costs. Large Companies Afford to buy, build, and operate leisure facilities Gap Small & Midsized Poor fringe benefits Client companies 7,000 organizations 3 million members Alliance Partners 70,000 menu items Resort houses Leisure facilities 10

11 Contact For more information: Relo Holdings, Inc. Planning & IR Group URL: This document is prepared for the purpose of reporting on company profile and operating results as of fiscal year 2011 (ending March 31, 2012). This is not a solicitation to purchase securities issued by the company. All information is based on data that were current as of May 15, Opinions and forecast statements are based on the judgment of management in accordance with information current at the time. The company makes no guarantees that this information is accurate or complete. The contents of this document may be changed at anytime without prior notification. Updated 2013/02/07 11