Japanese

Business model Initiatives to improve  corporate value

Development of our business model Corporate value improves via total  service and cyclical proces

Over the 40 years since our founding, Token Corporation has grown into a company able to offer total services for the use of land, from the construction of apartment buildings and rental condominiums (construction business) to the brokering, management, and operation of these facilities (real estate leasing business). By advancing our business model over the years, we have improved our corporate value.

A characteristic of the Token Corporation business model is the ability to provide all manner of services to both facility owners and tenants. For facility owners, we see to design, construction, clerical procedures, tenant recruitment, and facility operation and management, while for tenants we offer support that includes finding residences, handling move-in procedures, and providing consultation after moving in.

Business Model

Benefits of providing total service

Diversification of
earnings opportunities

We diversify earnings opportunities and enable flow-type earnings and stocktype earnings from both facility owners and tenants. We earn construction contract revenue (flow-type earnings) and management fee revenue (stock-type earnings) from facility owners, and brokerage commission revenue (flow-type earnings) and rental income (stock-type earnings) from tenants.

Circular processes expand and
reproduce added value

Our company enjoys a cycle in which we boast a high occupancy rate obtained which in turn enhances our reputation and leads to new construction orders. Through this business cycle process, the added value we create is expanded and reproduced, driving the growth of our company.

In addition, through the full-scale rollout of Facility Search Home Mate Research, which lists information on all manner of facilities, our new advertising and information businesses are moving forward. We aim to bring in advertising revenue from the website and achieve further growth through a synergistic effect with our brokerage business.

Results from large-scale management reform Improved corporate value via first major management reforms since our founding

Taking the Lehman Brothers collapse of 2008 as a turning point, we carried out the first large-scale management reforms since our founding. We undertook a variety of measures, including the postponement of new branch openings, closure of lossmaking sites, cost-cutting, making materials ordering more efficient, optimal deployment of employees, putting a greater focus on urban-oriented sales, selecting areas for activities to win construction orders, bolstering our brokerage network, and utilization of IT. In particular, strictly selecting areas for activities to win orders has contributed to reducing the post-order cancellation rate, improving the construction start rate, and improving profitability.

41st Term Settlement Summary

Occupancy rate (at year-end)

Occupancy rate (at year-end)

Consolidated results

Consolidated results

Results from large-scale reform have begun to show with our occupancy rate at the end of the 41st fiscal term (the fiscal year ended April 30, 2017) reaching a new high of 98.5%. Within consolidated business performance, both net sales and profit also reached new highs.

Increasing growth Initiatives to support the maintenance and improvement of corporate value

1. Comprehensive process control
ToPS, our unified tracking and management system, employs IT to link all parts of the cycle from contract, design and integration to brokering and management under a single umbrella.

Token Corporation works to maintain and improve corporate value even at the workplace level, endeavoring to manage all processes including contracts, design and construction, and facility brokering, management, and operation. Using a unique management system, we centrally manage the status of work progress and manage various risks, including contractual errors and construction delays. We also work to prevent errors, and have built a system for checking all necessary documentation for each process.

2. Improvement of technologies

The construction products that substantiate our corporate value boast excellent seismic resistance. We have patented these technologies, which provide a high level of performance backed up by the strength of our buildings' frameworks. We make daily efforts to further improve these technologies, shorten construction periods, and increase profits, through means such as gradually replacing steel pipe piles imported from China for a portion of the products in the highly earthquake resistant steel frame construction Shelulu series, with those manufactured by our company.

In addition, we actively apply for patents in order to create differentiation from competitors through technology developed by our company.

In October 2015, we received a patent for the TKS (Token Koshaon Sho)-55 System, a high-noise-insulating floor adopted as standard in our wood 2x4 products. We plan to adopt an upgraded version,
‘TKS-50’, in November 2016.

3. Quality control and operational safety

Under our quality control for buildings,
we have established a robust inspection system to which our construction contractors and our company are committed. We also strive to prevent accidents and ensure safety at worksites in order to prevent construction worker injuries and schedule delays.

Foundation construction using steel underground beams

4. Compliance and information management

Token Corporation works to manage all manner of risks through the Token Risk and Compliance Committee, to ensure that we do not lose the confidence of facility owners and tenants. Specifically, we carefully explain contract details in accordance with manuals to ensure that no misunderstandings occur in the future, and strive to protect and manage personal information through the Personal Information Protection Committee.

We will continue striving to maintain and improve our total corporate value, and aim for further growth.