Investor’s Guide 2016 - コンタクトセンター（コールセン … · · 2016-07-19As a major company in the industry, ... as the introduction of the Social Security and

Investor’s Guide 2016

People and Society

Clients a

nd Organizations

PROFILE

Reliable RingRelia, supporting collaboration to create values

With a variety of relationships with our customers based on reliance,we promise to share the harboring excitement and the future with

customers, and to create happy feeling.

We aim to become a corporate group that is a Reliable Relation, supporting collaboration to create new values.

We will continue to strengthen the Reliable Ring that connects people and society to

corporations and organizations based on our key strategies: “satisfy various customer needs,”

“grow with society” and “challenge new possibilities.”

From “service supply” to “service creation”

Relia works to connect “voices” and “ideas” of clients with the power

of people

01 Relia Inc. Investor’s Guide 2016

As a major company in the industry, posting consolidated net sales of ¥81.5 billion in the fiscal year ended March 31, 2016, Relia, Inc. provides support for various contact channels, including call centers and field operations, and is also expanding the outsourcing business, such as back office operations, related to customer contacts. We are pursuing growth by implementing a business strategy based on the mid-term management plan 2020.

The number of Company employees is 20,697 (consolidated basis). Human resources are the source of our ability to provide clients with high-quality services resulting in customer satisfaction while achieving sustainable growth of the Company. We regard the effective utilization of human resources, consisting of a trinity of recruitment, training and appointment, as a core competence, and aim to become a company with many attractive workplaces that allow employees to experience a sense of reward and personal growth.

* As of March 31, 2016

The Company had 678 client companies as of the fiscal year ended March 31, 2016. Doing business with these client companies, which represent a wide variety of industries, attests to our high level of reliability and quality.

81.5 billion JPY

20,697*

678

CONSOLIDATED NET SALES

NUMBER OF EMPLOYEES

NUMBER OF CLIENT COMPANIES

FORECASTS FOR THE JAPAN BUSINESS SERVICES MARKETMillions of yen

2014 2015 2016 2017 2018 2019

12,000

10,000

8,000

6,000

4,000

2,000

0

NUMBER OF CLIENT COMPANIES BY INDUSTRY

Industry Number of Client Companies

Manufacturing 106

Distribution 28

Mail-Order Sales 25

Software 23

Newspapers / Publishing 18

Information Services 40

Broadcasting 35

Telecommunication 19

Internet Providers 9

Industry Number of Client Companies

Housing / Real Estate 19

Transportation 21

Utilities 31

Banks 24

Insurance 43

Securities 14

Non-Banks 29

Government and Municipal Offices 89

Others 105

(Consolidated Basis)

Source: IDC Japan press release “Announcement of Forecasts for the Japan BPO/Business Consulting Services Market” (October 29, 2015)

(Forecast)

CAGR: 2014–2019: 4.2%

02Relia Inc. Investor’s Guide 2016

MESSAGE FROM MANAGEMENT

The Relia Group aims to contribute to client companies’ value creation while enhancing the Group’s corporate value.

JUN NAKAGOMEPresident


QUESTION 1

What are the principal aspects of the mid-term management plan and how is implementation progressing?

In view of the changes in the business environ-

ment, we have established a mid-term manage-

ment plan covering the five years from the fiscal

year ended March 31, 2016 to the fiscal year

ending March 31, 2020 with the aim of achieving

further growth and enhancing corporate value. In

this plan, we have set out Business Strategy 2018

covering the concrete growth strategy for the first

three years. By steadily implementing the annual

plan based on these strategies, we are striving to

enhance corporate value over the long term.

In line with changes in the working environment,

needs for outsourcing, mechanization, and auto-

mation are expected to increase. The trend is for

companies with in-house operations to consider

outsourcing various elements of their operations,

and moreover, there continues to be a great need

for structural reform. Eyeing the expanding busi-

ness opportunities, the Group has enriched cus-

tomer contact channels and promoted

deployment of sites responding to diversifying

customer contacts. At the same time, we are rein-

forcing our services to respond to diversifying cus-

tomer needs, such as pursuit of quality and cost

optimization.

To enrich customer contact channels, we

renewed the contact center platform and intro-

duced a cloud-based integrated system capable

of multi-channel and back office operations. This

system covers 2,000 seats and has realized multi-

channel responses by linking various channels

including not only telephone but also email, chat,

social media, and fax. In addition to demand for

conventional services, there is rising demand for

services associated with changes in systems, such

as the introduction of the Social Security and Tax

Number system and deregulation of the electric

power sector. We have a network of over 30

operations centers throughout Japan, including

the flagship Shinjuku Front Place Center that

opened in November 2015.

In response to diversifying customer needs, we

are promoting automation of call center opera-

tions. Along with the artificial intelligence-based

virtual agent service, we have started offering

Mobile Select and Relia Voice Cloud services,

which utilize voice recognition technology. We

aim to evolve as a marketing company that offers

a superior customer experience by combining our

long-cultivated response and empathy expertise

with the latest technology to create new value. In

regard to cost optimization, we intend to establish

a system enabling swift responses to client com-

panies’ needs by utilizing functions of the Relia

Group companies in addition to the automated

services mentioned above.


DIVIDEND HISTORYDPS(Yen)

Payout Ratio (Consolidated) (%)

QUESTION 2

What IT-based services does the Relia Group offer?

QUESTION 3

What is the policy on shareholder returns?

To give an insight into our IT-based service offer-

ing, examples of the Relia Group’s automated

platforms are introduced below.

Virtual Agent®

Virtual Agent is an online interactive agent utiliz-

ing artificial intelligence technology. It understands

natural language and automatically performs refin-

ing to display appropriate responses. Ongoing

tuning following the introduction of Virtual Agent

improves the accuracy of responses and expands

the scope of guidance. Since the launch of this

service in 2013, the cumulative number of clients

has reached 15. Virtual Agent is contributing to

labor saving and enhancement of customer

satisfaction.

Development is underway to apply IBM Watson

to Virtual Agent with the aim of transitioning to a

machine learning-based service model. Relia is an

authorized technology partner of the IBM Watson

Ecosystem Program.

Mobile Select®

Mobile Select is a smartphone app for offering

services that streamline contact center

operations.

When a user makes a phone call from a smart-

phone with Mobile Select installed, a menu

In principle, our consolidated dividend payout

ratio is targeted at a minimum of 50%. However, in

the event of any drastic change in the business

environment, such as a major investment, the divi-

dend policy may be changed.

appears on screen corresponding to the tele-

phone number called so that the user can select

the optimum service contact. It is also possible to

guide the user to a website that provides the

information sought.

Relia and Sony Mobile Communications estab-

lished a joint-venture company in April 2015, and

pre-installation of the Mobile Select app in smart-

phones manufactured by Sony Mobile Communi-

cations has started. As of March 31, 2016, seven

companies have introduced services using Mobile

Select.

Relia Voice Cloud

Relia Voice Cloud is a cloud-based voice recogni-

tion platform. Utilizing the cutting-edge technol-

ogy of Nuance Communications, Inc., the world’s

largest voice solutions provider, Relia offers voice

recognition services based on a pay-as-you-go

model. The service has started from December,

2015.

In addition to the services mentioned above, the

Group has introduced a multi-channel-ready plat-

form for customer relations. We are working to

offer IT-based services that are increasingly

sophisticated and more efficient.

Mar 2015 Mar 2016

29.0 29.0 29.0 29.0

57.9%

80.6%

64.4%56.3%

Mar 2014 Mar 2017(Estimate)

60

40

20

0

30

0

90

60

Ordinary Dividend

Payout Ratio


MID-TERM MANAGEMENT PLAN FOR 2020

BUSINESS STRATEGY 2018 (3KEYS 7ACTIONS)

TARGET FIGURES AND RETURN TO STOCKHOLDERS

KEY 1Satisfy various

customer needs

KEY 2Grow with

society

KEY 3Challenge new

possibilities

Strengtheningof core

competence

ROE target:

above 8%Dividend policy(payout ratio):

above 50%

ACTION 1Enhancing our function to offer various customer experiences

ACTION 2Strengthening field operations

ACTION 5ICT

ACTION 6Talent

ACTION 7Marketing

ACTION 3Business expansion in line with changes in social regulations and circumstances

ACTION 4Global organization through strengthening Asian business

Business Strategy 2018 has been established within the mid-term management

plan covering the five years from the fiscal year ending March 31, 2016 as the

specific growth strategy for the first three years.

140 14.0

120 12.0

100 10.0

80 8.0

60 6.0

40 4.0

20 2.0

0 0

Net Sales (Billions of yen)

Operating Income

(Billions of yen)

Net Sales [Steady case] Net Sales [Upside case] Operating Income [Upside case] Operating Income [Steady case]

Mar 2015(Actual)

Mar 2016(Actual)

Mar 2017(Estimate)

Mar 2018(Estimate)

Mar 2020(Estimate)

Note: Dividend policy may be changed in case management environment to be remarkably changed such as big investments.

74.2

3.74.6

5.36.0

7.0

9.0

12.0

81.587.5

118.0

89.0 89.0

127.0


General Meeting of Shareholders

Divisions and Affiliated Companies

Board of Directors: 7 Members

(including 2 Non-executive Directors)

Contract Risk Management Committee

Disaster Risk Reduction Committee

Information Security Committee

Compliance Committee

Audit & Supervisory Board:

4 Members

President Internal Audit Division

Chief Financial Officer (CFO)

Internal Control Division

Committee of Full-Time Board Members

Board of Managing Officers

Accounting Auditor

Election & Dismissal


Cooperation

Cooperation


Selection & Supervision

Reporting

ReportingInternal Audit

Evaluation

Reporting

Monitoring & Supervision

Monitoring & Supervision Reporting

Reporting

Accounting Audit & Internal Control Audit

Deliberation of important matters

Communication & Information Sharing

The Relia Group’s basic stance on Corporate

Governance is as follows.

1 We have the utmost respect for the rights of

shareholders, and endeavor to ensure that

shareholders are treated fairly and their

rights are not infringed.

2 We endeavor to create corporate value and

employment while maintaining sound

corporate management by building fruitful

relationships with stakeholders.

3 We ensure transparency in regard to all

important matters as well as timely and

appropriate information disclosure.

4 In addition to rigorously enforcing regulatory

compliance, the Board of Directors and the

Audit & Supervisory Board monitor and

supervise business operations, thereby

working to maximize corporate value.

CORPORATE SOCIAL RESPONSIBILITY

CORPORATE GOVERNANCE

June 2010 June 2011 June 2012 June 2013 June 2014 June 2015

261

319 333

385.5 392 382

June 2016

389

2.34%2.34%2.66%2.66% 2.63%2.63%

3.23%3.23% 3.38%3.38% 3.32%3.32% 3.26%3.26%

Relia, Inc. conducts business at over 30 operation centers

nationwide, from Hokkaido to Okinawa and also dis-

patches staff to client companies to provide services at

their premises. To establish and develop human

resources systems that can accommodate various work-

ing styles, we introduced the Region-Based Full-Time

Employment Program in 2015, and are promoting conver-

sion of contract workers to full-time employees. We are

fostering region-based full-time employees to become

the core personnel of regional operations. Through job

creation and enhancement of human resources, we are eager to contrib-

ute to vitalization of local economies. The number of region-based full-

time employees had reached to about 200 as of March 31, 2016.

The Group is promoting employment of people with disabilities through

BUSINESS PLUS INC., a specially approved subsidiary. We support their

independence and encourage their active participation in society with no

distinction from those without disability.

The number of employees at BUSINESS PLUS stood at 389.0 as of June

1, 2016 (actual employment rate of 3.26%*), a high rate that has gained

recognition in society. We will continue our initiatives to fulfill our social

responsibility as a corporate citizen.

* The number of employees with disabilities and the actual employment rate were calculated according to the statutory formula.

NUMBER OF EMPLOYEES WITH DISABILITIES AND ACTUAL EMPLOYMENT RATE

CORPORATE GOVERNANCE SYSTEM

Number of employees with disabilitiesActual employment rate


CONSOLIDATED FINANCIAL HIGHLIGHTSYears ended March 31

NET SALES

Millions of yen

PROFIT ATTRIBUTABLE TO OWNERS OF PARENT

Millions of yen

DPS AND PAYOUT RATIO

Yen

CASH AND CASH EQUIVALENTS AT END OF PERIODMillions of yen

OPERATING INCOME

Millions of yen

EPS AND ROE

Yen

CASH FLOWS

Millions of yen

EBITDA* AND EV/EBITDA RATIOMillions of yen

100,484

79,20974,235

98,071

2013 2014 20152012

81,500

2016

7,865

3,452

2,479

5,087

2013 2014 20152012

3,101

2016

58

29 29

51

2013 2014 20152012

29

2016

50.8% 50.8%

57.9%

80.6%

64.4%

22,711

15,361

21,184

17,041

2013 2014 20152012

12,343

2016

13,245

5,448

3,669

9,029

2013 2014 20152012

4,621

2016

114.12

50.09

35.97

73.81

2013 2014 2015

45.01

20162012

14.3%

20.0%

8.3%5.8%

7.1%

–2,678 –1,999–3,519 –3,065–2,005

11,885

6,7148,631

2013 2014 20152012

–2,696

1,109

–2,108

590

2016

–7,323

–428

–1,605

14,553

4,532

10,106

2013 2014 20152012

5,538

2016

6,531

4.28 5.01

8.34

15.70

11.01

EPS (Earnings per Share)ROE (Return on Equity)

EBITDAEV/EBITDA Ratio

DPS (Dividend per Share)Payout ratio

Cash flows from operating activitiesCash flows from investing activitiesCash flows from financing activities

* EBITDA = Operating income + Depreciation and amortization in the Statement of Cash Flows (including amortization of goodwill)


CONSOLIDATED BALANCE SHEETS

CONSOLIDATED MANAGEMENT INDICATORS

Millions of yen

Years ended March 31 2012 2013 2014 2015 2016

ASSETS

Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,870 45,265 39,858 43,030 43,693

Cash and deposits . . . . . . . . . . . . . . . . . . . . . . . . 13,741 18,611 10,861 19,184 10,743

Notes and accounts receivable—trade . . . . . . . . 10,731 9,059 9,218 9,491 13,326

Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,837 1,472 1,244 1,191 1,257

Deposits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 14,000 16,000 12,000 17,000

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,559 2,122 2,533 1,163 1,366

Non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . 10,800 10,690 10,651 10,289 13,051

Property, plant and equipment . . . . . . . . . . . . . . 2,480 2,209 2,018 1,590 2,210

Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . 241 643 792 646 672

Investments and other assets . . . . . . . . . . . . . . . 8,079 7,837 7,840 8,053 10,167

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,671 55,956 50,510 53,320 56,744

LIABILITIES

Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 13,278 13,539 7,598 9,757 11,301

Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . 1,243 845 868 865 1,242

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,521 14,385 8,467 10,623 12,543

NET ASSETS

Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . 37,305 41,586 42,006 42,640 43,654

Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 998 998 998 998 998

Capital surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,202 1,202 1,202 1,202 1,112

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . 35,696 39,977 40,397 41,032 42,135

Treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . (592) (592) (592) (592) (592)

Accumulated other comprehensive income . . . . . (155) (119) (49) 16 547

Non-controlling interests . . . . . . . . . . . . . . . . . . . . – 104 86 40 –

Total net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,149 41,571 42,043 42,697 44,201

Total liabilities and net assets . . . . . . . . . . . . . . . . 51,671 55,956 50,510 53,320 56,744

Millions of yen


EPS (Earnings per Share)(Yen) . . . . . . . . . . . . . . . . . 73.81 114.12 50.09 35.97 45.01

ROE (Return on Equity)(%) . . . . . . . . . . . . . . . . . . . . 14.3 20.0 8.3 5.8 7.1

DPS (Dividend per Share)(Yen) . . . . . . . . . . . . . . . . 51 58 29 29 29

Payout ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.8 50.8 57.9 80.6 64.4

EV (Enterprise Value) . . . . . . . . . . . . . . . . . . . . . . . . 43,255 72,846 54,476 71,171 61,003

EBITDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,106 14,553 6,531 4,532 5,538

CONSOLIDATED FINANCIAL STATEMENTS


CONSOLIDATED STATEMENTS OF INCOME

CONSOLIDATED STATEMENT OF CASH FLOWS

Millions of yen


Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,071 100,484 79,209 74,235 81,500

Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,641 79,482 66,507 63,593 69,359

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,430 21,002 12,701 10,641 12,141

Selling, general and administrative expenses . . . 7,400 7,756 7,253 6,972 7,519

Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,029 13,245 5,448 3,669 4,621

Non-operating income . . . . . . . . . . . . . . . . . . . . . . . 200 157 173 200 146

Non-operating expenses . . . . . . . . . . . . . . . . . . . . . 13 15 16 7 83

Ordinary income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,216 13,387 5,605 3,862 4,685

Extraordinary income . . . . . . . . . . . . . . . . . . . . . . . . 63 40 35 25 26

Extraordinary losses . . . . . . . . . . . . . . . . . . . . . . . . . 254 74 60 – –

Profit before income taxes . . . . . . . . . . . . . . . . . . . . . 9,025 13,354 5,580 3,888 4,711

Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,937 5,503 2,179 1,451 1,620

Profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,087 7,850 3,401 2,436 3,091

Loss attributable to non-controlling interests . . . – (14) (50) (42) (10)

Profit attributable to owners of parent . . . . . . . . . . . . 5,087 7,865 3,452 2,479 3,101

Millions of yen


Cash flows from operating activities . . . . . . . . . . . 8,631 11,885 (1,605) 6,714 590

Profit before income taxes . . . . . . . . . . . . . . . . . . 9,025 13,354 5,580 3,888 4,711

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 962 1,231 984 814 879

Amortization of goodwill . . . . . . . . . . . . . . . . . . . 114 77 98 48 37

Decrease (increase) in notes and accounts receivable—trade . . . . . . . . . . . . . . . . . (428) 1,781 (238) (354) (3,816)

Income taxes (paid) refund . . . . . . . . . . . . . . . . . (3,413) (4,196) (6,631) 881 (1,644)

Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,372 (362) (1,400) 1,436 422

Cash flows from investing activities . . . . . . . . . . . (428) (2,696) (2,678) 1,109 (7,323)

Purchase of non-current assets . . . . . . . . . . . . . . (606) (1,012) (1,074) (390) (1,053)

Net decrease (increase) in deposits paid . . . . . . 1,600 (3,000) (2,000) 2,300 (6,000)

Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,421) 1,316 395 (800) (269)

Cash flows from financing activities . . . . . . . . . . . (2,005) (3,519) (3,065) (1,999) (2,108)

Cash dividends paid . . . . . . . . . . . . . . . . . . . . . . . (1,962) (3,581) (3,031) (1,999) (2,001)

Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (42) 61 (34) – (107)

Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . 6,197 5,669 (7,350) 5,823 (8,840)

Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . . . . . . . . . 10,844 17,041 22,711 15,361 21,184

Cash and cash equivalents at end of period . . . . 17,041 22,711 15,361 21,184 12,343


CORPORATE DATAAs of March 31, 2016

MAJOR SHAREHOLDERS

Name of Shareholders

Number of Shares Held (Thousand

Shares)

Shareholding Ratio(%)

MITSUI & CO., LTD. 23,707 34.10

CENTRAL SECURITY PATROLS Co., Ltd. 6,193 8.91

Japan Trustee Services Bank, Ltd. (Trust Account) 5,071 7.29

JP MORGAN CHASE BANK 385174 2,104 3.02

The Master Trust Bank of Japan, Ltd. (Trust Account) 1,755 2.52

Note: Fractions of less than a thousand shares are rounded down.

BOARD OF DIRECTORS (As of June 24, 2016)

CORPORATE PROFILE

Name Relia, Inc.

Registered Head Office 2-6-5, Yoyogi, Shibuya-ku, Tokyo 151-0053

Head Office Odakyu Southern Tower 16F, 2-2-1, Yoyogi, Shibuya-ku, Tokyo 151-8583

Telephone Number +81-3-5351-7200

Establishment June 1987

President Jun Nakagome

Senior Managing Director Yoshihiro Shimomura

Directors Seiichiro TanakaWataru EbataHidenori AzabuHideki NodaJunichi Kishigami

Audit & Supervisory Board Members

Yasuhira MiyataYasutomo ShirakawaAkihiro SatoYasuhiro Wakasa

STOCK INFORMATION

Total Number of Shares Authorized 253,152,000 shares

Total Number of Shares Outstanding 69,503,040 shares

Number of Shareholders 13,941

Corporate Planning Div.Odakyu Southern Tower 16F2-2-1, Yoyogi, Shibuya-ku, Tokyo 151-8583Tel. +81-3-5351-7200 Fax. +81-3-5351-3300

Yasuhira Miyata

Yasutomo Shirakawa

Akihiro Sato

Yasuhiro Wakasa

Yoshihiro Shimomura Jun Nakagome

Seiichiro Tanaka

Wataru Ebata Hidenori Azabu

Hideki NodaJunichi Kishigami

Documents

Investor’s Guide 2016 - コンタクトセンター（コールセン … · · 2016-07-19As a major company in the industry, ... as the introduction of the Social Security and