Relo Group, Inc.
Company Profile
Fiscal Year 2016/3 (Ending March 31, 2016)
Security Code: 8876
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Company profile
Company profile
Company name Relo Group, Inc.
Security code 8876
Listed market First Section of the Tokyo Stock Exchange
Location (Headquarter)
4-3-23 Shinjuku, Shinjuku-ku, Tokyo 160-0022
Management Kenichi Nakamura President & Representative Director
Year established 1967
Employees 1,502 (as of March 2016)
Core business domain
Corporate fringe benefit management outsourcing service
Mission
To help corporations and their employees be free from care and anxiety, and enable them to perform to their full potential though our products and services. Accordingly, we will contribute to grow Japan.
History 1967 March Be established
1984 May Launches relocation house rental management service
1993 September Launches Relo Club fringe benefit membership club
1999 September Goes public (JASDAQ)
2001 March Begins Point Vacation Relo timeshare resort business
2001 August Launches Club-Off Alliance CRM outsourcing service
2002 April Launches Reliance leased corporate housing management outsourcing service
2005 June Launches global relocation support service
2009 September Begins hotel management business
2010 January Begins residential property management service
2011 November Listed on the First Section of the Tokyo Stock Exchange
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Profit has gone up more than tenfold
Consolidated income FY2016/3（Compared to FY1999/3）
Operating Revenue
183 billion yen
（11 times） Recurring Profit
11.8 billion yen
（22 times） Financial crisis
Billion yen Billion yen
Historical financials
Most of our revenue comes from stable businesses that have recurring revenue streams, including Reliance leased corporate housing management outsourcing service, Relo Club fringe benefit management outsourcing service and our original business, the relocation house rental management service, which we launched in 1984. By creating new outsourcing services to resolve various challenges to corporate fringe benefits that human resources departments face, and building on these stable business foundations, we have achieved 16 consecutive years of record revenues.
(Estim
ate)
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* “FY2014 59ｔｈ Corporate benefit research” （Research: Nippon Keidanren）
Market
Corporate fringe benefits have become one of the key factors in Japan to recruit and retain employees.
Booming Economy
Financial Crisis “Heisei” Recession
Thousand yen %
Leisure & Living support ¥12,610
Housing ¥12,278
＜Average spending on non-mandatory benefits＞ ¥24,889 per month, per employee
Average spending for corporate benefits has been increasing, even during recessions. Corporate fringe benefit has become one of the essential factors in Japan to recruit and retain employees. After the Japanese financial reforms of the 1990s, corporations promoted the disposal of idle assets, increasing demand for outsourcing. Recent intense global competition has forced Japanese companies to be leaner, further accelerating the outsourcing of non-core operations.
Average spending on non-mandatory benefits
FY2014：¥24,889
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Business segments and services
Housing Leisure & Living support
We provide comprehensive outsourcing services for corporate fringe benefits
• Relo Club Fringe benefit membership club
• Club-Off Alliance CRM outsourcing
• Smile Ranger RELO24 • Hotel management
Domestic Business (Fringe Benefit)
• Relocation house rental management
• Global relocation support • Serviced apartments
Global Business
• Point Vacation Relo Timeshare resorts
Other
• Reliance Leased corporate housing management
• Corporate housing property management
• Residential property management
Domestic Business (Relocation)
“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, which a large number of Japanese transferees were facing. In the process of expanding the business of helping transferred employees, we built a broad network with HR and Admin departments. Over the years, we have learned about the challenges, gaps and inefficiencies in corporate fringe benefits that companies face. Since then, Relo has expanded its businesses as a solution provider for “Corporate Japan.”
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Business segments
The Domestic Business Segment provides outsourcing services specializing in the housing field of corporate fringe benefits, e.g. corporate housing and dormitories. Offering corporate houses to employees has been common among Japanese corporations and considered a necessary ingredient of employee benefits today for tax and other reasons. However, time-consuming operation of corporate housing is a heavy burden for these companies. Reliance, a full-service outsourcing service that helps to manage corporate housing leases, and Relo-Net, an employee transfer support system that helps clients save time and money in finding their residences and moving, are just two examples of our popular solutions that lighten the burden and increase productivity. We also provide property management and brokerage service in areas where demand for corporate housing is high. This broad array of services meets various needs and helps clients optimize their operations.
Domestic Business (Relocation)
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Business segments
Domestic Business (Fringe Benefit)
The Domestic Business Segment also provides outsourcing service specializing in the leisure and living support categories of corporate fringe benefits. Demand for offering living support 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. A fringe benefit membership club, Relo Club provides various fringe benefits (resort hotels, gyms, leisure facilities, child care services, etc.) and services (booking, customer care, etc.), helping member companies to increase employee satisfaction and also save time and money. Using the extensive network with the service providers that Relo Club has accumulated over the years. We also provide a loyalty program, Club Off Alliance, to client companies that enables individual members to enjoy discounts on more than 200,000 qualified leisure and living support menus.
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Business segments
Global Business
The Global Business Segment provides broad relocation services assisting both companies and employees with overseas assignments and transfers. The Relo Group started the relocation house rental management service, a specialized rental property management service for vacated houses which transferred employees leave, in 1984 as our first business in the relocation business field. In the decades since then, it has grown into an integrated relocation service. Our integrated solutions include relocation policy development and review, web-based implementation processes management, visa application and international moving arrangement. Our overseas operations, including serviced apartments, brokerage services and more, also ensure smooth transitions. The Relo Group is a leader in providing a seamless service from preparation to return home, designed to maximize efficiency for both companies and employees throughout the process.
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• Review & sign contracts • Pay deposits and rents • Deal with complains When vacating • Assess & judge if normal wear-
and-tear or damage • Evaluate reasonable deposit
refund, and negotiate
Our services
Corporation
Landlord
Landlord
Landlord
Landlord
Landlord
Reliance (Leased corporate housing management) One of our core services, Reliance is a leased corporate housing management outsourcing service launched in 2002. The financial crisis of the 1990s drove a large number of Japanese corporations to sell off corporate owned housing & dormitories and replace them with a new system called kariage-shataku, in which companies rent apartments for their employees under the company name. Managing these rental apartments entails considerable cost and effort for the company (examples of what is involved are listed below). Reliance eliminates the burden of managing rented corporate housings. Outsourcing the operation and replacing the contracts allow companies to minimize the workload and focus on their core businesses.
Landlord
Landlord
Landlord
Landlord
Landlord
• Review & sign contracts • Pay deposits and rents • Dealing with complains When vacating • Assess & judge if normal wear-
and-tear or damage • Evaluate reasonable deposit
refunds, and negotiate Single
contract Corporation
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Our services
One of our core services called Relo Club is a fringe benefit management outsourcing service launched in 1993. Large companies used to have their own resort houses and facilities as one of their employee benefits. However, the majority of small & midsize companies were not able to afford them. To fill the gap, Relo launched Relo Club, helping small & midsize companies enrich their benefits for an affordable price. Relo Club provides various fringe benefits (resort hotels, gyms, leisure facilities, child care services, etc.) and services (bookings, customer care, etc.). Member companies can increase employee satisfaction and save costs.
Resort houses Leisure facilities
Poor fringe benefits
Small & Midsize
Afford to buy, build, and operate leisure facilities
Large Companies
50,000 menu items
Alliance Partners
Relo Club (Fringe benefit membership club)
Gap
8,400 organizations 4.9 million members
Client companies
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For more information: Relo Group, Inc. Planning & IR Group email: [email protected] URL: http://www.relo.jp/
This document is prepared for the purpose of providing a company profile and operating results as of fiscal year 2016/3 (ending March 31, 2016). This is not a solicitation to purchase securities issued by the company. All information is based on data that were current as of July 1, 2016. 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 any time without prior notice.
Contact
Updated 2016/07/01
