Business Segments
Business Models of the 3 Core Businesses
The basic structure of our 3 core businesses is the same. They differ only in contract content and contractor (company/corporation or local government). Earnings are stable due to the annually contracted business with low non-renewal rate x dispersed customer base, and capital investment is in principle unnecessary and CF generation capacity is extremely high.
Business Models of the 3 Core Businesses
Characteristics of the Business Model
Solid earnings base through contract business with low non-renewal rate x diversified contractors
Earnings are stable due to long-term contracts with an annual renewal rate of 90% or more. As a result, sales is steadily accumulated through the acquisition of new contracts.
Number of contractors are more than 1,200 corporations and 500 local governments. The business structure does not depend on specific customers.
High ability to generate cash flow (CF) due to asset-light business
- Because of contracted operations for facilities, capital investment is not required in principle.
- Stable CF can be created from the first year of the contract.
Positive growth in a spiral by reinvesting the cash earned in human resources
- Investment in human resources for acquisition of new contracts and stable operations of existing contract is directly linked to the growth
- Positive spiral by reinvesting the cash earned with high efficiency of investing in human resources.
Business Overview
3 core business areas
SHiDAX CORPORATION
Food Services
Contracted operation of
meal services
Vehicle Operation Services
Contracted operation of vehicle
management services
Social Services
Contracted operation of
local government facilities
Others
New businesses such as
total outsourcing services
※Withdrawal from the restaurant karaoke business in 2018
| Sales*1 | ||
|---|---|---|
| Food Services | 51,976 million yen | |
| Vehicle Operation Services | 23,359 million yen | |
| Social Services | 43,231 million yen | |
| Others | 3,195 million yen | |
| Segment Profit*1 | ||
|---|---|---|
| Food Services | 2,276 million yen | |
| Vehicle Operation Services | 2,105 million yen | |
| Social Services | 2,364 million yen | |
| Others | 283 million yen | |
Number of Operations
Food Services
| Preschools/ kindergartens | 190 |
|---|---|
| Welfare facilities | 360 |
| Offices | 450 |
| Factories | 240 |
| Campus | 100 |
| Hospitals | 190 |
| No.of locations | 1,785 |
Vehicle Operation Services
| Executive transportation vehicles (incl. official state cars, etc.) |
1,680 |
|---|---|
| Public and community buses | 590 |
| School buses | 450 |
| No. of vehicles | 3,785 |
| No. of contractors | 1,050 incl. 150 local governments |
Social Services
| After-school childcare centers | 1,570 |
|---|---|
| Public school lunches | 580 |
| Facilities and dormitories | 170 |
| Libraries | 80 |
| Tourist facilities | 20 |
| No. of locations | 2,620 |
| No. of contractors | 400 local governments |
Others
| Amusement facilities | - |
|---|---|
| Commercial hotels | - |
| Shared workspace | - |
| Others | - |
