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Medium-term Management Strategy
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Medium-term Management Strategy-2 |
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| Strategy of Strategic Three Businesses - 1: Residential Business and Silver Business |
Establish business base in three major metropolitan areas during first phase of
plan and nurture them as hubs for next source of revenue
The overall strategy for our Medium-term Management Strategy targets a significant leap towards becoming a “total support enterprise for housing.” The
Residential Business and Silver Business will be taking on important roles for this purpose. We are providing residential dwellings in the form of rental
apartment units, primarily to younger single persons and younger families through our core business. In the future, we aim to offer home ownership to families
through our Residential Business and nursing care facilities for the elderly generation through our Silver Business in order to make a leap towards becoming
an enterprise that can provide suitable modes of housing to match the needs of various individuals.
The Residential Business and Silver Business are both structured for the construction of residential housing or nursing facilities to be sold and are in fact
extensions of our core business model. For this reason it is possible for both of these businesses to efficiently and assuredly expand, based on their existing
business infrastructure (such as leasing operations, contracted outlets, and pool of both managed apartments and apartment owners).
1.[Residential Business] Proceeding with
construction of base as entry into three
metropolitan areas completed
Our main targets for the Residential Business are the “Baby-boomer Junior
Generation” (born between 1971 and 1975), who are moving out of our
studio apartments, offered by our core business. Approximately 6.3 million
of these people, comprising about 64% of their population, are
concentrated into three metropolitan areas (2005 estimate). We will,
therefore, enter into these three metropolitan areas and construct our
business base in these areas.
Our business is doing well according to our plan, with the number of
properties scheduled for sale reaching approximately 300 in the Kanto
Region by the end of March 2006. Additionally, we entered the Chubu and
Kinki Regions during the fiscal year ended March 2007. We intend to
accelerate our efforts in these individual areas and to build a strong
business base in each of these areas in the future. |
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2.[Silver Business] Early completion of entry
into three major metropolitan areas and
moving on to accumulating business results
Approximately 14 million or 56% of the “Silver Generation” (people 65
years and older), targets of our Silver Business, are concentrated in the
three metropolitan areas (2005 estimate). We are focusing our efforts on
operations in and around the three metropolitan areas for the time being
and strive to expand business in an assured manner.
The operation of the facilities following their construction for the Silver
Business, holds the key to business success. For this reason, we intend to
concentrate on building our operational know-how during the first phase of
the plan and schedule a gradual development, unlike the Residential
Business in terms of area expansion speed. |
Note: The population figure for the Baby-boomer Junior Generation and Silver Generation, in the three metropolitan areas described above, is our estimate based on the data in the "2005 Population Census of Japan," prepared by the Ministry of Internal Affairs and Communications.
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| Strategy of Strategic Three Businesses - 2: Broadband Business |
Promote conversion to revenue through enormous size brought about by core
business as part of stock business
If we were to consider the Leasing Business as a stock business that utilizes managed apartment units as an intermediary, then the Broadband Business is a
stock business that utilizes software (or IT) as an intermediary. We have been providing a unique broadband service, “Leopalace BB,” to mainly occupants of
managed apartment units and have been proceeding with the installation of STB units (LEO-NET terminals). The installation has been completed at
approximately 83.3% (324,000 units) of the managed units as of March 31, 2007. This gigantic market unique to us deals with the occupants of managed
apartment units as subscribers. Through an increased number of managed units and the improvement of the STB installation rates, the scale of the business
will become even more gigantic. The expansion and increase in number of targeted individuals will continue as services are implemented to our silver
facilities, as well as through sales to external institutions, such as hotels and medical institutions.
We are currently developing and implementing paid services to occupants and services that utilize media value to corporations in a sequential manner, in
order to promote our conversion into revenue gained from benefits of our gigantic size.
| ■Content of Broadband Business’s principal services |
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| Services aimed
at tenants |
Free
services |
●Continual internet connection
●Basic CS (satellite television) service (Four channels including MTV)
●Informational services (news, weather, fortune telling, maps etc.)
●Services such as gaming, shopping, and home delivery
●Creation of participatory programming for tenants and their transmission |
| Paid
services |
●Video on demand (VOD): Approximately 3,000 titles
●CS Plus (satellite television) service (Four additional channels including WOWOW) |
| Corporateorientated
service utilizing
media content |
Under
development |
●Sale of systems to condominiums, hotels, and hospitals
●Classified advertisements using the LEO-NET and related program guide “LEO-NET BOOK”
●Programs with commercial tie-ups (Tools for switching to surveys and request for
brochures following commercials)
●Interlocking TV and cell-phone program (character entry tool using cell-phone) |
| In planning stage
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●Various subscription services (such as regional information and corporate information) |
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Set Top Box (STB) |
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