Sony Life Enters Tie-up with Watami Co., Ltd., in the Nursing Care Business
September 28, 2006
1. Objective of the Alliance
Sony Life and Watami aim "to provide quality nursing care services to enable as many people as possible to maintain happy lives as they age." The two companies' corporate philosophies are mutually reinforcing and compatible with this objective. The vision of Watami's nursing care business is to provide heartfelt nursing care to as many senior citizens as possible, helping them to live happy lives, and Sony Life's philosophy is to work constantly to provide high-quality services that meet customers' expectations and earn their trust.
(i) Scope
- Sony Life's development of life insurance products and provision of consulting services through its Lifeplanner® sales employees will benefit from input at the nursing care point of contact.
- The companies will mutually communicate customers' needs as they operate and develop nursing care facilities.
- Sony Life's life planning services will be provided to potential customers of Watami's nursing care facilities.
- Watami will provide preferential treatment to customers that Sony Life introduces, offering priority in entering facilities and discounts on lump-sum move-in payments for customers with whole-life residential contracts.
- Sony Life will inject capital into Watami to reinforce the relationship.
- Sony Life will dispatch senior management to Watami no KAIGO Co., Ltd., a wholly-owned nursing care business subsidiary of Watami.
- The companies will establish an exploratory committee on the nursing care business.
(i) About the Company
Founded in 1984, Watami first listed on the OTC market in 1996. Since March 2000, the company's shares have been traded on the First Section of the Tokyo Stock Exchange. The company commenced the full-fledged development of the nursing care business by acquiring RnoKAIGO Inc. in March 2005. Converting to a holding company structure in April 2006, Watami's business development focuses on fields where "people" are the main factor for differentiation, including businesses in food service, nursing care, agriculture, environment and education. As of September 1, 2006, Watami operates 599 restaurants both inside and outside of Japan and has 20 nursing care facilities in Japan. The company also owns agricultural land spanning 450.5 hectares (as of May 2006). Under the slogan of "being the company that receives the most 'thank yous' in the world," Watami aims to achieve consolidated sales of ¥1 trillion by the year 2020, including ¥300 billion from nursing care business provided at 1,000 facilities.
| Capital | ¥4.33 billion |
|---|---|
| Number of Employees | 2,827 (groupwide, as of April 1, 2006) |
In the nursing care business, Watami develops Rest Villa and Revita facilities, which are operated by Watami no KAIGO Co., Ltd. By maximizing the expertise cultivated through its food service business as well as group synergies in the areas of dining, hospitality services, facilities and maintenance, low-cost facility construction and facility development, Watami is developing a value-added nursing care business that "allows regular people to live happy lives on average pensions." Nursing care business is growing, backed by strong demand, as is indicated by occupancy ratios of 90% at existing facilities.
(iii) Watami's History in Nursing Care| July 2004 | Entered the nursing care business |
|---|---|
| March 2005 | Acquired RnoKAIGO Inc. |
| April 2005 | Started management and operation (with occupancy ratios of less than 60%) |
| April 2006 | Changed company name to Watami no KAIGO Co., Ltd. Occupancy ratios at existing facilities exceeded 80% |
| July 2006 | Opened new facilities (with occupancy ratios that significantly exceeded the company's original targets) |
| Current | Occupancy ratios of 90% at existing facilities |
Watami's original plan was to operate eight facilities in the year ending in March 2008, but has since revised this target upward to 12.
4. About Sony LifeSony Life emerged through the Sony spirit of contributing to society by taking on challenges. By delivering consulting-based tailor-made life insurance products to customers, Sony Life has introduced a new perspective to Japan's life insurance industry. The company's innovative Lifeplanner® system and its service quality have been well received by customers, contributing to strong growth.
Sony Life currently focuses on enhancing its provision of "Lifeplanner Value®," as only its Lifeplanner® sales employees can, by staying in close contact with customers throughout their lives. Sony Life offers a unique approach. By supporting customers throughout their lives, Sony Life's Lifeplanner® sales employees work with customers, facing their challenges together and suggesting appropriate solutions to help turn their life dreams and goals into reality.
| Established | August 1979 |
|---|---|
| Capital | ¥65.0 billion |
| Number of Employees | 5,250 (including 3,826 Lifeplanner® sales employees) |
| Total Assets | ¥3,103.2 billion |
| Insurance in force | ¥29,084.5 billion (total of individual life insurance and individual annuities) |
| Income from Insurance Premiums |
¥580.5 billion |
*Lifeplanner and Lifeplanner Value are registered trademarks of Sony Life Insurance Co., Ltd.
Note: This is an English-language summary of a Japanese announcement made by Sony Life on September 28, 2006. The summary was prepared by Sony Financial Holdings Inc. solely for the convenience of non-Japanese readers.
