Integrated Report2022

Japan Best Rescue System Co., Ltd.
Urban Net Fushimi Bldg. 5F, 1-10-20 Nishiki, Naka-ku, Nagoya
Phone: +81-52-212-9900 (Main line) https://www.jbr.co.jp/en/
Securities code: 2453

Greeting

The JBR Group’s Philosophical System

With the establishment of its new Mid-Term Business Plan (covering FY2022 to FY2024),
Japan Best Rescue System Co., Ltd. ( JBR) redefined its Corporate Philosophy and establishedits new MVV (Mission, Vision, Value) System. This offers employees a common guideline in the direction
the Group needs to go in the future and the ways of thinking we hold important.

MissionWe help people in need
Representative Director & CEO

Nobuhiro Sakakibara

We create the “Best Rescue System”

VisionCareer summary

We create the best framework and services for giving

Apr. 1989 Joined ACROSS Co., Ltd.

people peace of mind by getting close to their daily lives

Jan. 1994 Established NOA, Ltd., Director
Feb. 1997 Established Japan Motorcycle Road Service Co.,
Ltd. (currently the Company), Representative

Be fair: Stay loyal to customers, colleagues, and yourselves

Value

Director (current position)
Apr. 2004 Director, SECOM WIN CO., LTD.

Be generous: Respect others, don’t be conceited, be humble

Nov. 2008 Director, Japan Small Amount & Short Term

Be a challenger: To cherish advancing ahead, not to be afraid of failure

Insurance Co., Ltd. (current position)
May 2017 Director, JBR ANSHIN WARRANTY Co., Ltd.
(currently Japan Warranty Support Co., Ltd.)

Contents

01

The JBR Group’s Philosophical System

Chapter 3 Sustainability

In the 25 years since our founding in February 1997, we atthank us for our services, which are guided by the02

Greeting

25

Sustainability

JBR have constantly worked toward one of our mostprinciple of “solving daily life troubles,” that helped them27

Our Ideal Best Rescue System

important objectives: to help people in need. Of course,

in their needs.

29

Environmental and Personnel Initiatives

appropriate compensation is essential to maintaining an

However, our initiatives to help people in need have

31

Social Initiatives

organization that can act systematically to help people injust begun. Undoubtedly, there are still many people in

33

Corporate Governanceneed. While earning that compensation, we haveneed in places we have not yet seen or noticed. The spirit

expanded our network of operation partners who directlyof the SDGs, which is to “Leave No One Behind,” is very

help people in need; recruited members to form acompatible with our own philosophy. Looking ahead tofoundation for providing stable service; expanded thethe next 25 years, we will continue to pursue our grandrange of our services to extend a helping hand to meet

objective of helping people in need by finding people invarious needs; always taken new challenges as weneed that we have not yet noticed and developing newcontinued providing services; and repeatedly evolved as a

products and services to extend a hand to them.

Chapter 1 Value Creation
03

JBR Group History05

Performance Data

07

Business Areas and Business Model

09

Value Creation Process

Chapter 2 Growth Strategy
11

CEO’s Message

15

New Medium-Term Business Plann

19

COO’s Message

Chapter 4 Data
41

10-Year Financial and Non-Financial Information

43

Business Performance and Financial Summary(Consolidated)

45

Stock and Corporate Information

business. As a result, each day a great number of people
01

Japan Best Rescue System Co., Ltd.

Japan Best Rescue System Co., Ltd.

02JBR Group History

C h a p t e r 1 Va l u e C re a t i o n

Throughout its history, the JBR Group has been committed to helping people in need.
As such, the growth of our business itself contributes to social sustainability.
The Group’s origins date back to the founding of Japan Motorcycle Road Service Co., Ltd., the predecessor of Japan Best Rescue System
Co., Ltd., in February 1997. (The current business name was adopted in August 1999.) JBR became a listed company a mere eight years
later. Since the beginning, it has remained devoted to developing and offering services and products designed to help people in need.
After twists and turns that included periods of expansion and reorganization, it has now reached its “second founding phase” and is on a

Sep 2021
Made ACTCALL INC. and TSUNAGU INC.
wholly-owned subsidiaries

growth track. Heading into a new future, the JBR Group remains committed to doing business that directly promotes sustainability.

Aug 2020
Made Japan PC Service Co., Ltd.
an equity-method affiliate

Net sales (JPY million)
15,000
Oct 2015
Group reorganization

To thenext stage

10,000
Sep 2007
Changed listing to first sectionof Tokyo Stock Exchange

Aug 2005
Listing on Mothers sectionof Tokyo Stock Exchange

Nov 2007
Listed on first sectionof Nagoya Stock Exchange

New MediumTerm Business Plan

（FY2022-FY2024）
5,000

Feb. 1997
Founding

Jun 2019 Obtained casualty insurance business license

May 2016 Began Warranty Extension Business and Repair Business
Oct 2008 Acquired Japan Small Amount & Short Term Insurance Co., Ltd., began Insurance BusinessFeb 2005 Partnered with National Federation of University Co-operative Associations, began Membership Business
0
FY1997

FY1998FY1999FY2000FY2001

FY2002

FY2003

Founding phase

03

Japan Best Rescue System Co., Ltd.

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012

Expansion phase

FY2013

FY2014FY2015FY2016

Reorganization phase

FY2017FY2018FY2019FY2020

FY2021

FY2024

Second founding phase

Japan Best Rescue System Co., Ltd.

04

Performance Data

C h a p t e r 1 Va l u e C re a t i o n■ JBR Group Advantages■ Financial Highlights (Consolidated)

Net sales (JPY million)
12,396

11,766 12,010 12,057

Operating profit (JPY million)

Ordinary profit (JPY million)

13,460

1,967
1,430

1,638

1,644

1,367 1,408

Multi-service format that
respond to all types of troubles

1,798 1,740

Membership Warranty

Insurance
FY2017 FY2018 FY2019 FY2020 FY2021

FY2017 FY2018 FY2019 FY2020 FY2021

FY2017 FY2018 FY2019 FY2020 FY2021

EBITDA (JPY million)

Net profit attributable toowners of parent (JPY million)

ROA
ROE

1,812

1,639

1,579 1,653
1,192

1,038

(%)

997

23.5

3.94

16.4
11.7

11.7

12.9
9.0

7.5
56

7.0
0.6

FY2017 FY2018 FY2019 FY2020 FY2021

FY2017 FY2018 FY2019 FY2020 FY2021

FY2017 FY2018 FY2019 FY2020 FY2021

Gross assets (JPY million)

Net assets (JPY million)

Equity ratio (%)

13,22040.6

14,865
11,6685,373 6,042

FY2017 FY2018 FY2019 FY2020 FY2021

8,104 7,907

FY2017 FY2018 FY2019 FY2020 FY2021

40.6

millionMembership Business3.34 million
Insurance Business0.59 million

Building up service expertise andensuring quality
Contact Centers

28,175
21,204

Spot
response

Number of subscribers, which
are increasing as we expand
partnerships with a variety ofindustries

(%)

20.9

886

18,761Small
amountshort-term
insurance

952

889

1,590

Licensed to sell both casualty
insurance and small amountshort-term insurance, JBR isdeveloping numerous products

42.1

40.2
35.8

FY2017 FY2018 FY2019 FY2020 FY2021

7

The ratio of stock- andsubscription-type sales, which
provide stable earnings, to all sales

86.6

Casualty
insurance

The JBR Group challenge: “Wewill not leave anyone in need!”
Number of people in need helped

203,586

persons/year%

Number of partners covering
the last mile

Approx.

10,000

Sales partners: 6,665(total service calls for all businesses)

Managing business efficiently withthe smallest organization by using
our partnerships and consolidating
functions
Net sales per employee

¥

39.01

million*One of the highest productivity in the industry

Construction partners: 3,200

Strengthening governance!
Percentage of Outside Directors

60％(Ratio of Outside Directors to all Directors)*On December 24, 2021, we transitioned to acompany with an audit and supervisory committee,
with Outside Directors making up 62.5% of Directors(five out of eight)*Among companies listed on the first section of TSE,
only 7.7% have a majority of independent outside
directors*All numbers from FY2021

05

Japan Best Rescue System Co., Ltd.

Japan Best Rescue System Co., Ltd.

06

Business Areas and Business ModelC h a p t e r 1 Va l u e C re a t i o n

We provide comprehensive daily life troubleshooting services, all through the year and all throughout Japan.
Our “service infrastructure you can count on when in need” has become firmly established, as evidenced by our top

Emergency Business 9.8%
Flow-typebusinesses

share in the collective housing market.

Insurance
Business
34.7%

Daily life troubles
Keys

Plumbing

Window glass

Pests

GardenRenovation

Other

Earnings model

Other 3.7%ー

Almost 90% of net sales from stock- andsubscription-type businesses resistant to businessenvironment changes<Compositionof net sales
by business>

Membership
Business
51.8%

Stock- and subscription-typebusinesses

The JBR Group develops and offers an original rescue
system for responding rapidly to people’s troubles.

<Composition of net sales by business>

One of the greatest characteristics of the JBR Group’s businessmodel is that nearly 90% of net sales come from stock- andsubscription-type businesses, which are resistant to changes inthe business environment. Mainly, customers purchase contracts
before trouble happens, so we can use that as a stable revenue
base while pursuing our growth strategy.

The JBR Group’s rescue system
Expand contracts with customers around Japan through our sales partners
Contract
Membership fees &insurance premiums

Customer

Sales partners
6,665 throughout
Japan
Real estate companies
University co-op● Home improvement
stores● Appliance storesーWarranty extension
for home appliances●●

Introduction fees

Membership Business

Repair Service 24.6%

Other 6.1%

<Composition of membership fee net sales by service category>

Service available to every household in Japan
thanks to partnerships with a broad range of industries<Compositionof net sales
by service
category>

Our Membership Business primarily offers three services: QR
QR Service
for New Tenant
61.1%

Service for New Tenant, QR Service for Student Life, andWarranty extension for home appliances. By carefully designing
our products based on our years of expertise, we can partnerwith a wide range of industry sectors and achieve high

QR Service forStudent Life 8.2%

Service request from customer

QR service

profitability in our Membership Business: an operating profit
margin of greater than 20%.

Contact Centers
7 throughout Japan

Service call request
Service call cost

Operation partners
3,200 throughout
Japan

Customers throughout
Japan (general)

Insurance Business

Smartphone Insurance 2.7%
Sports Club Accident Insurance 2.9%

Provide service

3.34 million members
Insurance payout

Insured 590,000

Through operation partners, provide peace of mind to customers in need*All numbers from FY2021

Other 11.5%<Compositionof net sales
by product>ー<Composition of insurance premium income by product>

Expanding various products, especially householdbelongings insurance, using relationships
with real estate companies

New Sumai
Room Insurance In the Insurance Business, with the stable revenue base provided
by our New Sumai Room Insurance for household belongings
82.9%(which makes up more than 80% of our insurance premiumincome), we are developing a variety of products to meet the needsof partner businesses in a range of industries. Two Group
companies selling small amount short-term insurance and casualty
insurance are the heart of this business. They offer a wide range ofsolutions, from highly flexible and unique products to large-scale
products for group insurance.
*All numbers from FY2021

07

Japan Best Rescue System Co., Ltd.

Japan Best Rescue System Co., Ltd.

08

Value Creation Process

C h a p t e r 1 Va l u e C re a t i o n

Together with our network of some 10,000 partners throughout Japan, we pursue our mission“We Help People in Need” as we aim to achieve a society where no one is left behind.

■ Megatrends
Opportunities■ Initiatives■ GoalBusiness model See pp. 07-08

Growth strategy See pp. 11-24■ Mission● Growing need for outsourcing as the working population

declines● Changing lifestyles, more diverse values

We provide comprehensive daily life troubleshooting services all

Execute FY24 Medium-Term Business Plan (FY2022 to FY2024)

through the year in response to all manner of troubles

and thereby overcome issues that have surfaced

Emergency Business

Redefine Corporate
Philosophy

Membership Business● Simple office work, AI, labor savings, 6G, connected

Insurance BusinessChange theorganizational system

Establish Group-wide
strategy

Repair Business● Gradual decline in population, households, new construction▶ Supporting the aging society▶ Promoting the use of the latest

service quality■ Major capital and track record■ SDG initiatives[Social capital]

Network of partners
across Japan

6,665● Operation: 3,200● Sales:[Intellectual capital]+

Abundant service
content closely
connected to people’s
homes and lives+

Overwhelming number ofsubscribers

3.34 million
0.59 million
Total: 3.94 million● Membership:● Insurance:[Track record]

Operation record: 55 million[Human capital]
Employees: 345

Number of people
in need helped

Corporate governanceSee p. 25

Help achieve a sustainable
society by solving social issues
and thereby growing our business

203,586[Financial capital]
Net assets: ¥11.6 billion

persons/year(total service calls for all businesses)*All numbers from FY2021■ Management foundation See pp. 33-40

Japan Best Rescue System Co., Ltd.

See pp. 25-26▶ Ensuring both eco-friendliness and● Increasingly difficult to secure personnel

09■ Business activity materialities

technology● Increasing risk of abnormal weather and natural disasters● Business becoming borderless, more diverse personnel

See pp. 27-28

We do not leave anyone in need

Rebuild businessportfoliosocietyRisks

We Help People in Need

■ Our Ideal Best Rescue System● Predicted increase in service industry workers● Expanding market for small-scale & light renovation

See p. 01

Compliance

Risk management

Japan Best Rescue System Co., Ltd.

10

CEO’s Message

C h a p t e r 2 G ro w t h S t ra t e g y“We Help People in Need”
Best Rescue System Takes
Its Efforts to the Next Stage!

A look back on the previous Medium-TermBusiness Plan

“What is JBR?” How to break throughto the next stage of growth: the starting point
that’s embedded in our name
Under the previous Medium-Term Business Plan (covering
FY2019 to FY2021), we advanced three key strategies:
1) form new alliances with businesses, 2) practice multilayered marketing by pursuing collaboration between
divisions and departments, and 3) create new services andproducts. Each strategy stands upon a revenue base thatwas developed in earlier years.
Our efforts over the last three years helped us to becomeaware of certain issues. During this time, we were constantly
aware of a dilemma, because although we were producing

11Japan Best Rescue System Co., Ltd.

some positive outcomes with each of the three strategies,
none of them were getting quite as far as we had anticipated.
When we were choosing alliance partners or developing
new services or products, for example, we did not havethe “unwavering standards” that we should have had. As aresult, our focus was not as sharp as it should have been
whenever we made a decision. We also discovered that thewalls between divisions and departments were an obstacle.
In quite a few cases, this kept us from developing newservices and products.
These issues could be traced back to the way the
JBR Group originated. Namely, up to now, the Group has
expanded its services and products while acquiring a varietyof businesses. For that reason, we were organized into
several vertical businesses, acting more like a collectionof “internal companies” rather than a cohesive unit. Eachinternal company had its own corporate culture and its
unique organizational rules. When many different cultures
exist together, one advantage is to make it easier for new

Representative Director & CEO

Nobuhiro Sakakibara

ideas to bloom. It is also true, unfortunately, that we nearly
failed to see the identity at the core of who we are.
Now that we see these starting-point issues, we arecommitted to solving them and breaking through to our nextstage of growth. With that understanding, one year into theprevious Medium-Term Business Plan, we launched an effort
to establish the next such plan. As we developed our vision,
we placed the greatest emphasis on answering “What is
JBR?” and “Where should JBR be going?” We worked forabout two years to formulate a plan.
Basic stance on the new Medium-Term Business Planand redeﬁnition of our Corporate Philosophy

Redefining our starting point in the“Corporate Philosophy”
The JBR Group consists of people of diverse types. To

make the most of our people, the members of management
concluded that the most pressing and important issue wasto build an enterprise and organization that would align all ofmanagement in the same broad direction.
In answer to the question of what JBR is, the new
Medium-Term Business Plan (covering FY2022 to FY2024)
offers a clear vision of our own identity. The plan also
describes where JBR should be going as an objective that all
Group employees can share.
As a first step, we began a process of redefining our
Corporate Philosophy. The purpose was not simply tochange the Corporate Philosophy, but to begin by goingback to our starting point and reorganizing our fundamental
priorities.
There was absolutely no change in our mission that “We
Help People in Need.” The more we discussed the topic, themore convinced the Medium-Term Business Plan project
members became that we had found the answer. The great
discovery from the discussion process was that the services

Japan Best Rescue System Co., Ltd.

12

CEO’s Message

we created out of a desire to help people in need continue
to win the support of society and are thriving today, but
services that deviated too far from that vision have largely
disappeared.
Ultimately, we decided to reconsider our Vision andValue. Our Vision answers the question of where JBR should
be going, while our Value expresses the kind of person eachGroup employee should be.
Specifically, our Vision says that “we create the best
framework and services for giving people peace of mind
by getting close to their daily lives.” It states clearly how
we engage society through our business. Incidentally, we
decided that in FY2021 we would withdraw from the new
power producers and suppliers (PPS) business. We had
first entered the business in 2020, but it lost money fortwo straight years. Looking at this business now, under
our new definition, we might not have entered the market
in the first place. That is because electric power sales israther far from our definition that “we get close to their
daily lives” in order to “help people in need.”
Meanwhile, our Value is a positive expression of theway employees should be: “Be fair,” “Be generous,” and“Be a challenger.” The old definition was worded negatively
because it was a vestige from a time when the business
was in disarray. After reflecting on this, we decided to use
wording that was the exact opposite.
We are convinced that by redefining our Corporate
Philosophy, in future we will be more focused than everbefore. We will be ready to develop new services andproducts, choose alliance partners, and enable each
employee to act from their individual work sites.

Initiatives for changing strategies and organization

Creating Group-wide strategies and organization
to pursue overall optimization
Up to now, the JBR Group operated under the internal
company system. As such, our Group business strategies
were put together based on each internal company’s own
strategies. However, partial optimization at each internal
company will never lead to overall optimization for theGroup.
For that reason, we started by deciding that under the
new Medium-Term Business Plan, our strategies would
determine the organization. To begin, we would set Group-

13

Japan Best Rescue System Co., Ltd.

C h a p t e r 2 G ro w t h S t ra t e g ywide strategies for the JBR Group. Then we would change
into the organization best suited for achieving thosestrategies. In other words, we carried out reform that went
back to the starting point.
The first step in establishing Group-wide strategies
was to clarify our core ideas for overall optimization of
the Group. The result was that we became aware thatour partnership strategy was still the most importantand basic strategy for us. The JBR business model issupported by a network of sales partners and operation
partners throughout Japan. Without them, we would notexist. Continuing to put our partnership strategy at our core
and aiming to realize maximum value with the smallest
organization and resources is management that gets backto our starting point.
As a second step, we aim for strategies that go on the“offense” or “defense” according to the situation. Undermarketing strategies, which correspond to “offense,”
we will actively expand alliances in keeping with ourpartnership strategy and proactively consider M&A if thetarget is a business consistent with our mission that “We
Help People in Need.” Under operational strategies, whichcorrespond to “defense,” we implemented a new coresystem (ERP system) to standardize business processes
and make them more efficient. This is based on the ideaof getting maximum value with the smallest organization
and resources. Conventionally, the services we provided
to tenants of leasing properties managed by Company A
would be slightly different from services we provided totenants of leasing properties managed by Company B. For
reasons like this, there were numerous patterns in the way
we dealt with each company with which we contracted.
We always prioritized the idea of meeting each company’s
exact needs, and as a result, efficiency was continuallydisregarded. JBR decided to overhaul this system. Our
approach was to standardize our services while carefully
checking with each company with which we contracted.
First, we standardized business processes and used thatto help build an extremely simple core system. The factthat we were able to build that system before the start of
the new Medium-Term Business Plan gave us a very big
advantage in terms of promoting our operational strategies
going forward.
Next, to change our organizational system, we madea bold transformation from an internal company system
to a functional organization. Organizations must be
constantly changing to adapt to changes in the market
and the like. So, although it may be necessary to adopt

an internal company system again sometime, under the
new Medium-Term Business Plan, we decided to return
to being a functional organization. The reason is that we
believed this is the best type of organization for pursuingoverall optimization. Until now, many affairs were handledin small units and organized within internal companies,
where they were closed off to the rest of the Group. By
tearing down the walls, we hope to share each function’s
information, develop expertise and skills to a higher level,
and accumulate know-how.

Organization of business portfolio

Ascertaining our business to get tosustained growth
Under the new Medium-Term Business Plan, we have begun
getting our business portfolio in order. We are developing
standards to assess the growth potential and profitability of
our current businesses and businesses we are thinking of
taking on in future. Such standards will help us determine
what businesses to grow and how to grow them, what
the best timing is to decide how each business is doing,
and whether to withdraw from a business based on thatassessment.
For example, in our mainstay Membership Business, QR
Service for New Tenant, Repair Service, and QR Service forStudent Life are very profitable. I should note that profitability
has worsened at ACTCALL INC., a former competitor that
we made into a subsidiary by M&A in September 2021.
However, JBR experienced and overcame a similar situation
five years ago. We are positive we can use that experience
to return ACTCALL’s profitability to about the same level as
JBR’s in a short time.
On the other hand, there are problems with theEmergency Business and Repair Business, where earnings
continue to worsen. We have set a timeline for improvement
and are working to make that happen, but if we are unable
to achieve the desired results, we will determine to withdraw
from those businesses.
We aim to achieve sustained growth going forward bycontinually reviewing our business portfolio.

Sustainability initiatives

Realizing a sustainable society by
fully leveraging business characteristics
that directly concern sustainability
Every business of the JBR Group began as a way for us
to help people in need. As such, our business activities
themselves directly concern sustainability, and expanding
our business is the same as expanding sustainability
management.
As a corporate citizen, JBR is obligated to pursue
sustainability management and help achieve a sustainable
society as society tries to realize carbon neutrality by 2050.
We have identified key issues (materialities) with the aim offully leveraging business characteristics that directly concern
sustainability while further enhancing the awareness of all
Group employees.
In the pursuit of our materialities through our businessactivities, we will address the major changes happening
in our communities, like the declining birthrate and aging
population and the rapid innovation of digital technologies.
While so doing, we will dare to build a new Best Rescue
System.
I respectfully ask our stakeholders for their continued
support.

Japan Best Rescue System Co., Ltd.

14

New Medium-Term Business Plan

C h a p t e r 2 G ro w t h S t ra t e g y

Basic Policy 2: Rebuild business portfolio

Significance of new Medium-Term Business Plan and a look back on the previous Medium-Term Business Plan

Previous Medium-Term Business Plan

New Medium-Term Business Plan

We will enhance the stability, growth potential, and profitability of management by constantly reviewing the JBR Group’s business

FY21 MediumTerm Business Plan

FY24 MediumTerm Business Plan

portfolio (how the Group business is structured) from a more strategic and long-term perspective. By doing so, we will concentrate and

FY2019 to FY2021

FY2022 to FY2024

Internally, promote structural reform of the management
and business; externally, focus on expanding alliances

redistribute management resources, identify areas of strategic investment, and so on to promote well-balanced management.

B

Building upon the achievements of the previous medium
plan, promote rebuilding of management system that getsback to our starting point and scale up our growth strategy

A
Growth businesses

Businesses to cultivate

A look back on the previous Medium-Term Business Plan
New partnerships

New businesses● Achieved record net sales in the last year of the plan, thanks to proactive expansion of alliances and other factors● Increased profitability with initiatives to liquidate unprofitable business, standardize business processes, increase<Membership>
Warranty extension

productivity and efficiency, etc.

(We built a solid revenue base capable of yielding an operating profit margin of greater than 10% despite headwinds like COVID-19,
sudden procurement price jump of market electric power, etc.)

13,460Operating profit (JPY million)
13.6

OPM (operating profit margin) (%)

12.2

11.3

1,408
10.5

7.1
10,405 11,621

12,117

11,552

12,396 11,766 12,010 12,057

FY21 MediumTerm Business Plan

1.8
189

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY13

2.8
329
FY14

597

FY15

1,638
1,430

4.9

Previous Medium-Term Business Plan

FY13

7.2

823

FY16

889

FY17

Growth potential

Net sales (JPY million)

Casualty insurance
Small amountshort-term insurance

Repair

1,367

Emergency

Previous Medium-Term Business Plan

FY21 MediumTerm Business Plan
FY18

FY19

FY20

<Membership>
Real estate QR service

ACTCALLTSUNAGU<Membership>
Other QR service

FY21

C
PPS

New Medium-Term Business Plan: Basic Policies

Mature businesses

Problem businesses
To address the issues that surfaced as a result of executing
the previous Medium-Term Business Plan as well as important
issues relating to achieving medium- to long-term growth
going forward, we will build a foundation for full-fledged
growth in the future by promoting management that gets backto our origin, including redefining our Corporate Philosophy.

15

Japan Best Rescue System Co., Ltd.

Withdraw/
sell off

Profitability

Basic Policy 1: Redefine Corporate Philosophy

p. 01

Basic Policy 2: Rebuild business portfolio

p. 16

Basic Policy 3: Establish Group-wide strategy

p. 17

B : Commit resources to develop new partners in existing businesses and create businesses to cultivate in and out of the Group

Basic Policy 4: Change the organizational system

p. 17

C

A

: Expand highly profitable businesses by penetrating market, promptly improve profitability of two companies acquired by M&A: If growth and profitability are not expected to be improved, consider withdrawing from/selling off low-profitability businesses

Japan Best Rescue System Co., Ltd.

16

New Medium-Term Business Plan

C h a p t e r 2 G ro w t h S t ra t e g y

Basic Policy 3: Establish Group-wide strategy

Management targets

Management Strategy

We shall aim at creating maximum value with the smallest
organization and resources by promoting a “partnershipstrategy” in both marketing and operation aspects

Numerical targets (JPY million)
Net sales
Operating profit

Marketing strategy

Operating profit margin ( OPM )Grow existing businesses

Operational strategy

Promote new businesses

Further penetrate markets to support earnings
foundation while expanding partnerships preparedfor changes in external factors
Proactively create new business through M&A,
partnerships with startups, and business development

Enhance both operational quality and cost efficiency▶

Use technology to enhance efficiency and quality of call work▶

Maintain and expand service infrastructure▶

Establish hiring and training policies built on diversity andmaintain the environment▶

Respond to the high governance standards that are expected of companies listed on prime
markets, e.g., by establishing various committees▶ Set management strategies and goals that aim both to solve social issues andproduce economic benefits▶ Actively disclose information and encourage constructive conversations with investors,
including conversations about continual shareholder returns▶

Enhance cost efficiency through our partnership strategy andfunctional organization

FY22

YoY

FY23

YoY

FY24

YoY

Vs. FY21

13,460+11.6%

18,000+33.7%

20,000+11.1%

22,000+10.0%+63.4%

1,408

+3.0%

1,730

+22.8%

2,000+15.6%

2,500+25.0%+77.5%

10.5%

-

9.6%

-

10.0%

-

11.4%

-

-

1,900

+9.2%

2,150

+13.2%

2,650+23.3%+52.2%

1,740

-3.2%

56

-94.3%

1,200+2,014.4%

1,500+25.0%

1,800+20.0%+3,071.6%

EBITDA

1,653

+4.7%

2,309

+39.7%

2,644+14.5%

3,185+20.5%+92.6%

3,940+33.6%

4,407+11.9%

4,923+11.3%

5,471+11.1%+38.9%

3,347+39.5%

3,725+11.3%

4,145+10.8%

4,604+11.1%+37.6%

KPIs
Members

Be a company that is attractive to its stakeholders in Japan and overseas

YoY

Net profit

Ordinary profit

Subscribers (thousand)Management & financial strategy

FY21

593

+7.8%

681

+14.9%

778+14.1%

867+11.5%+46.2%

Number of employees

345+41.4%

364

+5.5%

366

+0.5%

375

+2.5%

+8.7%

JBR non-consolidated

178

-8.7%

190

+6.7%

187

-1.6%

189

+1.1%

+6.2%

Group companies

167+240.8%

174

+4.2%

179

+2.9%

186

+3.9%

+11.4%

InsuredBasic Policy 4: Change the organizational system

Long-term outlook for the JBR Group

Aiming for “efficient business growth with the smallest organization by making use of partnerships,”“We Help People in Need”:

in January 2022 we started transitioning to a new system optimized to achieve that aim.

Through the problem-solving, the JBR GroupNew businesses that are supported
New businesses A by abundant cash and deposits from stockand subscription-type businesses

will continually renew its Best Rescue System.
[Sales and marketing companies]

Issues with thecurrent organization
Internal company system(11 internal companies in total)

The vertical nature of the organization
keeps it inefficient even though
there are not enough advantages to it(Subscribers)

Emergency

Real estate

Membership

Warranty

Contact

IT

Repair

Life-tech

Insurance

Surpass 10 million
subscribers by FY30

10 million

Businesses for an aging society such
New businesses B as monitoring services, mainly using existing
business infrastructure[Administration companies]

Serviceinfrastructure

Corporate

Reach 5 million
subscribers during FY24

Penetrate renovation market and accelerate
Warranty extension penetration of new-construction market
by expanding partnerships with homebuilders

Currently
3.94 million
Sales department(market penetration of existing businesses)

Administrative department,
IT systems, governanceInsurance, warranty,
ACTCALL & TSUNAGU

5 million

Aim of new organization
Functional organization(4 divisions in total & Group companies)

We shall allocate management
resources for overall optimizationand promote efficiency
by consolidating functions

17

Japan Best Rescue System Co., Ltd.

Sales Div.

Operations Div.

Management of contact centerand operation partners

Administration
Div.

Management
Strategy Div.

Group companies

New businesses and partnerships,
corporate planning, Group administration

1.13 million
0.59 million
0.56 million

Insurance

Proactively launch new products by making use of ourdevelopment capabilities in addition to expanding salesof our mainstay household belongings insurance

Other
QR service

Develop new partnerships in addition to penetrating
university student market and expanding sales channels

Real estate
QR service

More quickly acquire new partnerships
with real estate companies with our top
market share in the collective housing market

1.65 million
FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29

FY30

Japan Best Rescue System Co., Ltd.

18

COO’s Message

C h a p t e r 2 G ro w t h S t ra t e g y

JBR Group business performance over time

Record net sales and an operating profit margin
that continues to beat 10%

Pushing forward with

The consolidated business performance for FY2021 (“theterm”) reveals that net sales grew 11.6% YoY to ¥13.4
billion, while operating profit grew 3.0% YoY to ¥1.4 billion.
This was a new record for net sales.
Operating profit, on the other hand, was impacted bysome unanticipated negative factors. We had planned thatthe newly begun power producers and suppliers (PPS)
business would become profitable during the term, but
we ran into serious difficulties when procurement prices
on the wholesale electric power market rose abnormallyhigh. Many businesses fell into management challenges
and a number of them withdrew from the field. Given
the situation, the JBR Group decided to withdraw while
the business was still losing money. For that reason,
we suffered an operating loss totaling ¥222 million. In
spite of this significant special factor, however, the ratioof operating profit to net sales reached 10.5%, thus
remaining above 10%.
Other than the PPS business, the businesses of the
JBR Group remained on a healthy expansion track that waslargely equal to our plans. Because we made the decisionat an early stage to quit the PPS business, we believe thiswill have a great positive effect on our growth strategy in thenext term and beyond.

growth investments for a leap
forward and taking the leadin building unique social
infrastructure

Director & COO

Mitsuhiro Wakatsuki

Major reasons JBR has entered a full-fledged
growth trackThree years of structural reform is startingto pay off. The JBR Group is on afull-fledged growth track.
Withdrawing from the4 PPS business had negative impacts.
However, though it is not obvious from the businessperformance for the term, we perceive that the JBR Grouphas entered a full-fledged growth track. Details will be
discussed later, but here I would like to start by explaining
the reasons why we have entered a growth track.
Starting in 2018, during a period we consider our

19Japan Best Rescue System Co., Ltd.

“second founding,” we spent about three years making acomplete structural reform.
To give an example, we sorted out our business partners
based on profitability. In the Membership Business, we form
partnerships with various real estate-related companies andprovide QR Service for New Tenant, but there were someclients that sought services outside of contracts. Moreover,the services provided to each client differed a little fromcase to case.
For those reasons, we decided to officially turn down
out-of-contract services and to quit doing business witha client if we could not negotiate improvements. Also,
we made it a basic target to standardize the services weprovide. We kept negotiating closely with each business
partner, spending about two years in the standardizing
process.
We also addressed workflows that varied from one
internal company to another, such as the use of approval
documents and procedures and systems for applications
and approvals. For these, we established uniform
standards and consolidated them. We made sure thatrisk management and compliance systems were firmly
embedded within business processes. In other words,
we made big progress building a solid Group governancesystem.
These efforts have resulted in visible and rapid
improvements to profitability and productivity. We also
have established a business process management andpromotion system for developing new clients. With this inplace, we have transitioned from a state of acting timidly
in a sense to a state of acting confidently and rapidly. Thishas made it possible to expand our business horizontally in
one stroke.
This has also radically changed the awareness of
employees who witnessed this transformation. Now,
throughout the Group, there is a sense in the air of wanting
to work together to produce good numbers and employees
have a very strong “income-earning awareness.” Forexample, the management department (and it is not an
exception) is sometimes introduced to new customers
by the banks or securities companies with whom thedepartment does business, and they use this to proactively
develop new customers. Sometimes, the department’s
results even exceed those of the sales department. Of
course, the sales department has also been significantly
stimulated and is developing a strong income-earningawareness.
During the term, this positive spiral began to produce

Japan Best Rescue System Co., Ltd.

20

COO’s Message

C h a p t e r 2 G ro w t h S t ra t e g yreal and noteworthy results, and we believe it has put us ona full-fledged growth track.

A unique business model for driving growth

Helping partners greatly expand
their potential by offering subscription-based
prevention services
There is another important reason why our business is
expanding horizontally so vigorously. It is because we noticed
the great potential in the JBR Group’s business model andwe opened the door for it.
JBR’s business is to provide services and products
for responding rapidly to all types of life troubles. Our
Emergency Business only has contact with customers aftersome trouble occurs, and as such its earnings are notstable. That is why we have stepped up development of abusiness model wherein customers can sign up for services
before trouble happens. This business model is preventive
in nature: customers pay a set fee in advance and the JBRGroup helps them free of charge when troubles happen.
The service is very much like insurance. For that reason,
overseas institutional investors have seen the JBR Group as
a business in the financial sector in more than a few cases.
Eventually, we realized that if our business is insurance-like,
we do not necessarily have to limit our partnerships to realestate-related companies.
In the past, it was only natural that the JBR Group would
think of real estate-related customers as partners, because
life troubles are obviously part of everyday life. But once wewiped away our preconceptions, we were surprised how
many potential markets there were. We thought that building
JBR services into a variety of industries’ service packages
could make our own services more attractive.
That is why we switched to a new policy of actively
developing a subscription-based business model. Under theconventional pattern where we partnered with real estaterelated companies, our partners sold JBR services that
contained the partner’s name, such as “ABC Apartment
Finder Inc. QR Service for New Tenant.” So all we wereselling was an individual JBR service. By developing this into
a subscription-based service that is itself incorporated into a
service provided by a partner company, we greatly expanded
our potential to find partners.
One example is an initiative with Osaka Gas Co., Ltd.,
with whom we had an existing relationship. “Kaketsuke
Services” (urgent response services) are included in themenu of Osaka Gas services for which customers can pay
a small monthly fee to get convenience and peace of mind.
JBR provides the actual service. Such subscription-based
membership services are rapidly expanding at this time.
One advantage of a model that adds a JBR service to apartner company’s service is that there is much lower riskof contract dissolution than is the case if our services weresold individually.

JBR’s basic business model

Incidentally, subscription-based services are also
expanding with existing real estate-related company
services. Under this model, subscribers pay a monthly
service fee with their rent, so customers can join theservice and hold down their occupancy costs that
otherwise tend to be higher at the time of a move. There
are advantages as well for JBR: there is less dissolution
risk and less administrative work to renew the service, so
we are actively transitioning to this model.

Big advances in Membership Business

Explosive increase
in membership
At time of salethroughorganic growth and M&A;
Partner sells JBR service along with their own service
full-fledged growth ahead
Service fee

Income (sales)

We believe that the Membership Business, which makes up
the core of the JBR Group’s sales and profits, has entered a
new growth phase.
Sales
Customers
Backedup by the approximately
three-year initiative
partners
I mentioned previously, membership numbers showed
explosive growth in FY2021. Membership grew by nearly one
million, from 2.39 million on September 30, 2020 to 3.34
million on September 30, 2021. By service, that included again of 300,000 memberships by organic growth (100,000
for QR Service for New Tenant and 200,000 for Warranty
extension for home appliances) and 630,000 by M&A

growth (acquisition of ACTCALL).
Trying to forecast how much memberships could
increase by organic growth, we presently plan to reach 3.72
million by September 30, 2022, which is very conservative.
Since we continue to actively develop new customers, we
expect we may get more than this.
Incidentally, even if we look just at real estate-related
business, we had 1.65 million memberships as of September
30, 2021. Since the membership of the second-placecompany (not listed on a stock exchange) is only about
300,000, this makes JBR the overwhelming No. 1 in theindustry.
We forecast membership to increase at a strong rate,
especially with real estate-related business, but we are also
happens
steadily developingWhen
newtrouble
businessthat is not real estaterelated. Therefore,
we
believeitispossible
Provide service to customers
in needwe will see bigchanges in the makeup of our membership in the next few
Dispatching costyears.
Trouble resolved(costs)Expanding Insurance Business
Operation
partners

Customers

Stepping up product development with a
two-pronged approach:small amount
Needs
short-term insurance and casualty insurance
Also in the Insurance Business, which is our second
pillar, the number of persons insured is growing quickly

Membership trends in core business (Membership Business)(thousands of memberships)

At time of sale

When trouble happens

Partner sells JBR service along with their own service

Provide service to customers in need

4,000

3,347
3,000

Service fee

Income (sales)

Dispatching cost

Trouble resolved(costs)2,000

Customers

Sales
partners

Operation
partners

Needs

1,683

Japan Best Rescue System Co., Ltd.

2,223

2,247

2,222

FY2017FY2018FY2019

2,399

1,245

Customers
1,000

948

0

FY2012

21

1,889

2,089

FY2013

FY2014FY2015FY2016FY2020

FY2021

Japan Best Rescue System Co., Ltd.

22

COO’s Message

C h a p t e r 2 G ro w t h S t ra t e g y

At time of sale

When trouble happens

Partner sells JBR service along with their own service

Provide service to customers in need

Service fee

Dispatching cost

Income (sales)

thanks Customers
to proactive developmentSalesof insurance products.
partners
On the earnings side, New Sumai
Room Insurance(household belongings insurance) is steadily gaining
customers, and that is helping to stabilize our income frominsurance premiums. In January 2020, we started sellingcomprehensive household belongings insurance to rental
housing owners and real estate companies. This is one
example of measures we are taking to further stabilize ourbusiness.
With the stable basis that household belongings
insurance gives us, the JBR Group has actively developed
products to help people in need with our Insurance Business.
This development expanded out from our position as a(thousands of memberships)
smallamount short-term insurer (which requires registering
4,000
with the Prime Minister’s office). The JBR Group has put
more energy into developing new products than most small
amount3,000 short-term insurers, of which there are more than
100 in Japan. We have been a leader in the industry, forexample providing the chairman of the Small Amount & 2,089
1,889 five
2,000
Short-Term
Insurance Association of1,683
Japan for about
years.
1,245
In more than a few cases, however, while exploring
948
1,000
the potential for partnerships with businesses in various
industries, we encountered insurance needs for contracts ofa scale too great for small amount short-term insurance. To
0enable us to respondin 2019 we
obtainedFY2016a
FY2012 to those
FY2013needs,
FY2014FY2015license from the Financial Services Agency to offer casualty
insurance and established the new Rescue Insurance Co.,
Ltd. Products we have developed in recent years include

Trouble resolved(costs)Operation smartphone insurance,
sports club accident insurance,
Customers
partners
and pregnancy insurance(see p. 31), which focuses on
post-partum depression and treatment for infertility. Suchproducts have created a new stir concerning the needs thatNeeds
people experience.
Then, in January 2022, we formed a capital andbusiness alliance with the Minimini Group. This is anotherexample of how we are further developing new insurance
products in the real estate field.
By making these moves, as one of the few businessgroups offering a two-pronged approach with both small
amount short-term insurance that is highly flexible andcasualty insurance for larger-scale coverage, the JBR Grouphopes to address all types of industry needs.

3,347

New business going forward and an imageof medium-to long-term growth
2,247

2,223

2,222

2,399

Offering our “four-way good” scheme
to all types of industries and soon getting
to 10 million service agreements
We believe that the business model of the JBR Group isheadinga period ofFY2019
rapid expansion
growth as we
FY2017 intoFY2018
FY2020 and FY2021
ride the big waves that are the demands of the time.
Wherever people live, there is always the risk of daily
life troubles. Somewhere, there is always someone “inBasic overview of new service/new product/new business creation at JBR

Major social issues (themes)

Consolidation ofregional banks

Electronic
payment

Digitaltransformation(DX)Regional
revitalization

National
resilience

Declining birthrate
and aging population

SDGs

COVID-19

Medical support

Staying at home

23

Japan Best Rescue System Co., Ltd.

TravelOther

JBR services(Daily life roubleshooting)

QR service

Insurance

Speed up expansion into
owned-home market

Use alliances to develop
new products

Warranty extension

Last Mile

Focus on marketing tohomebuilders and equipment
manufacturers

Use existing infrastructure
to help people in needneed.” Following our mission to help people in need, in the
25 years since our founding, the JBR Group has developed
a wide range of services and products, including daily life
trouble solution service, small amount short-term insurance
and casualty insurance, warranty extension for homeequipment, repair service, and monitoring service. Our
business model, which is meant to prepare people for theirneeds, is in strong demand from a variety of industries.
As such, many discussions about forming alliances areunderway.
The companies seeking alliances with the JBR Group
have one thing in common, which is that those companies
themselves are “in need.” For example, in May 2021 weannounced an alliance with The Fukuho Bank, Ltd. Thiswas our first business alliance with a regional financial
institution. However, the JBR Group is currently considering
alliances with more than 20 regional financial institutions
throughout Japan. What is driving this interest is that
financial institutions see the earning capacity of their main
business slowing as regional economies slump and there isa downturn in demand for financing. They realize that theirtraditional business model is not working well. Increasingly,
these companies are seeking out the JBR Group as they
search for new ways to support regional economies. On
the one hand, the Group is responding to the needs ofour customer financial institutions, but we also add ourfinancial institutions’ business partners to our own networkof operation partners that we send on service calls. Ourconstruction partners are also “in need” as the slumpingof regional economies cuts into their work volume. We add
local businesses like these as coperation partners and givethem priority when we dispatch workers. This is set up to
help people in need, local businesses in need, and financial
institutions in need. When the JBR Group is included, thisbecomes a “four-way good” scheme.
We are now at a big turning point in the times, andmore than a few industries have some needs (that is to say,problems) that require attention. Our aim is to help suchindustries and businesses solve their problems as well as we
can by offering them our unique business model dedicatedto helping people in need.
As of September 30, 2021, the JBR Group has 3.94
million service agreements in effect, counting both theMembership Business and Insurance Business. We believe
we can boost that number to 10 million shortly before
2030.
This assumes we can win nearly 10% of the market
based on a population of 120 million people in Japan.

However, population is not the limit on actual market size.
A person living in collective housing who purchases thedaily life trouble solution service may also purchase an
extended warranty for an air conditioner they buy from anappliance store, as well as purchasing insurance to cover
their household belongings. In a similar way, a single person
could enter into three or four different contracts. We believe
such expansion is possible going forward.
In December 2021, we entered into a capital andbusiness alliance with ITOCHU Corporation. This alliancemeans something very different from other alliances wehave formed to develop new business. By partnering with
ITOCHU, which is developing its own business in the fieldof daily life consumption with a market-in approach, we canwin contracts in the Membership Business and Insurance
Business, the main businesses of the JBR Group, and stepup the pace of our business expansion. The arrangement
also gives us the potential to enhance the quality of ourcustomer support, increase efficiency, and develop newservices with data usage. Moreover, the alliance opens thedoor to the possibility of expanding overseas, something wehave been exploring beneath the surface.
There are many sprouts of growth happening at the JBRGroup right now. Remembering that it is our shared objective
to help people in need, we will cultivate as many of thesesprouts of growth as we can to more widely contribute tosolving social issues.
We will practice management that exceeds the
expectations of our stakeholders. We look forward to yourcontinued support.

Japan Best Rescue System Co., Ltd.

24

Sustainability

Chapter 3 Sustainability

Stance on sustainability

Solving social issues and achieving our growth strategy by working on business activity materialities

The growth of the JBR Group’s business itself helps to achieve a sustainable society

Today we are at a major turning point. Population and environmental problems are big megatrends affecting the market environment. These are significant social issues

The JBR Group exists to bring consumers products and services to solve life troubles. Therefore, by expanding our sales network (sales partners) and service network(operation partners) far and wide throughout Japan, we are building what could be called social infrastructure for daily life troubleshooting. As of now, we have expanded
our network to about 10,000 partners (sales and operation partners combined) and are working to expand it more in the future.

that no enterprise can ignore any longer. Another big megatrend is the rapid innovation in digital technologies like AI, IoT, 6G, and DX (digital transformation). The JBRGroup has grasped these big changes, and we are actively working to respond to them with the business activity materialities “Supporting the aging society that is having
fewer children,” “Promoting the use of the latest technology,” and “Ensuring both eco-friendliness and service quality.”This business structure means that the day-to-day business activities and future business growth of the JBR Group are themselves a contribution to sustainability, thatis, the achieving of a sustainable society.
The JBR Group will continue contributing to sustainability through our business activities and growth.

Initiatives on the three business activity materialities

Initiatives on materialities and SDGs

Supporting the aging societythat is having fewer children

Promoting the use of the latest technology

Ensuring both eco-friendlinessand service quality

The JBR Group has identified materialities aiming to achieve a society where no one is left behind. We take initiatives to solve two sets of issues: “business activity
materialities,” which are the key issues that we are taking on with our corporate activities, and “management base materialities,” the key issues that are critical for

Solving social issues and achieving our growth strategy

strengthening the foundation of our business. By so doing, the JBR Group will contribute to achieving the SDGs (Sustainable Development Goals). An important partof our work on the business activity materialities is building sales and service partnerships, so we see SDG 17 in particular, “partnerships for the goals,” as the highest
concept.

Japan: an approach to 120 million people

Category

Business activity
materialities

Materialities (key issues)

Concrete measures for solving materialities

Supporting the aging society that is
having fewer children

We shall ▶meet the need for outsourcing as the working population
declines▶create new services corresponding to changes in lifestyleand industry▶maintain and expand the network of operation partners,
which has the potential to shrink

Promoting the use of the latest
technology

We shall ▶improve the efficiency and quality of contact center
operation▶minimize IT risk by adopting ERP▶use 55 million data points from our operating track record
to develop trouble-prevention services

Ensuring both eco-friendliness andservice quality

We shall ▶reduce paper consumption▶improve service call efficiency▶install vending machines in office that generate donations

Building a higher-level governancesystemManagement basematerialities

25

We shall ▶set management strategies and goals that both solve social
issues and produce economic benefits▶establish audit, nomination, and remuneration committees
and sustainability and internal control committees▶continue to review business portfolio & visualize
management by strengthening administrative accounting

Strengthening BCP system

We shall ▶build capacity to continue taking calls even underpandemic and natural disaster conditions

Maintaining active dialogue withstakeholders

We shall ▶maintain an active dialogue with investors▶disclose information simultaneously in Japanese andEnglishBuilding great places to work

We shall ▶develop employees and promote better work-life balance

Japan Best Rescue System Co., Ltd.

Overseas: taking the challenge to serve
the entire world

Real estate QR service

Relevant SDGs

4,500,000

households

TAM (total households in Japan)

58,000,000

Other: 550,000

households

Property managementcompanies

JBR service subscriptions

3,940,000

2,000,000

Other

560,000
Main householdbelongings insurance

590,000

Warranty extension

1,130,000

Company S 300,000

Collective housing

22,000,000

households

ACTCALL

Detached housing

36,000,000

households

630,000
JBR

1,020,000

SAM (target households)

4,500,000

households*As of September 30, 2021, based on research by JBR

1

The only listed company providing so many
housing- and life-related services

3

We shall win outsourcing demand createdby the declining working population2

We have established an overwhelming market shareby acquiring the second largest company in the industry

4

We shall enter the detached housing market
by developing industries where we can form alliances

Japan Best Rescue System Co., Ltd.

26

Our Ideal Best Rescue System

Chapter 3 Sustainability

The aim of the JBR Group is to constantly improve and build a better[Our ideal Best Rescue System]

Best Rescue System by pursuing our Vision and responding to our materialities.

Do not leave anyone in need

Resources

Penetration of partner network in existing industries and expansion
into new industries
Deep diving into “last mile” infrastructure demand
Development of new insurance products by making use of sales
networks of joint venture partners

VisionHelping people in need anytime, anywhere, whatever the situation

Value
provided

We create the “Best Rescue System”
We create the best framework and services forTrouble-prevention services using technology

Business activity materialities

giving people peace of mind by getting close to their daily lives
Supporting the aging society that is having fewer children
Promoting the use of the latest technology[Our ideal Best Rescue System]
Ensuring both eco-friendliness and service quality

Do not leaveanyone in need

[The Best Rescue System now]
Top share in the collective housing market
Network of partners closely connected to people’s homes and lives
Resources

Licenses to offer small amount short-term insurance and casualty insurance
Abundant cash and deposits from stock- and subscription-type businesses

Value
provided

Pur s

Giving customers peace of mind knowing they are prepared for daily
life troubles that will occur someday
Solving daily life troubles of tenants on behalf of property
management companies[Rescue System starting point][The Best Rescue System now]

Providing peace of mind
to customers who know
they are preparedfor daily life troubles

R

f vi
o
t
i
u

nse
o
p
s
e

ues

Number of people in need helped (total service calls for all businesses)
203,586
183,068

127,270

139,385 143,354

154,831

167,611103,050
51,481FY2012

Japan Best Rescue System Co., Ltd.

iss
ke y

(Persons)

Helping people
facing troubles

27

to

sion

63,383

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

Japan Best Rescue System Co., Ltd.

28

Environmental and Personnel Initiatives

Chapter 3 Sustainability

Basic stance on the environment

Basic stance on personnel

JBR takes environmental initiatives as part of our “business activity materialities,” the key issues that we are taking on with our corporate activities as a whole. We are

People are JBR’s most important management resource. As such, we are taking action to increase employees’ job satisfaction. We are working to create a wide range

taking actions designed to save energy while enhancing service quality, for example reducing paper consumption and improving service call efficiency. In addition, we areof personnel value. JBR Group employees get help finding work-life balance and are being offered more training. We are also pursuing shared value with the operation

working to contribute to environmental protection by supporting groups dedicated to that purpose.

partners who work with the Group to develop our business.

Eco-friendliness

A Motivating Place to Work

Reducing paper consumption

For details, see the JBR website. (Japanese only)
https://www.jbr.co.jp/corporate/actionplan/

Promoting the General Employer Action PlanIn FY2018, JBR used nearly two million sheets

Sheets of copy paper consumed (10,000)

of copy paper. Initiatives since then have cut
consumption each year, and in FY2021, only about153

half as many sheets were used. Additionally, sinceand Act on Promotion of Women’s Participation and Advancement in the Workplace. We are working to resolve three specific issues: the fact that we have successfully
recruited and retained female employees but have few of them in management; the fact that we have not established measures to inform employees about our childcare

7.6
112

October 2019, we have been issuing invoices and

JBR has established and is carrying out a General Employer Action Plan as based on Japan’s Act for Measures to Support the Development of the Next Generation

Paper invoices for QR Service
for New Tenant (10,000)

leave system or encourage them to use it; and the fact that employees in some posts have to put in long work hours during busy times.
96

payment documents online. As a result, our mainstay

Promoting work-life balance and reducing overtime

QR Service for New Tenant has gone from issuingnearly 80,000 paper invoices yearly to only a few
thousand.

FY2019FY2020

FY2021FY20190.7

0.5

FY2020

FY2021

As part of our efforts to promote work-life balancefrom the work style reform perspective, we are

Percentage of employees taking childcare leaveencouraging employees to take paid leave andImproving service call efficiency

enhancing our childcare leave and reduced work

100

100

hours programs. In July 2020, we established a
JBR is working to make service calls more efficient when we are contacted by someone with a life trouble.
This means reviewing and revising operations, developing new networks (operation partners), and increasingly
dispatching service personnel from locations close to the place where the trouble occurred. As a result, thechildcare leave system for men. We set a target ofTimes expressways were used on service calls
Percentage of times expressways were used

7,966

the use of expressways increased, in part because the number of subscriptions for QR Service for New Tenantand Warranty extension for home appliances combined grew by about 300,000. As a percentage of all service
calls, however, the use of expressways is on a declining trend.

8.1

FY2019

Office vending machines generate donations
A portion of the sales from vending machines located in our Nagoya Head Office is donated to OISCA, anorganization working to protect the environment around the world. (This initiative began in July 2020.)

Donations generated from vending
machines
FY2020¥29,869

FY2021¥92,278

About OISCAOISCA is an international NGO headquartered in Japan withorganizations in 41 countries and regions. It is working to protect theenvironment internationally. Activities include earthquake relief andforest protection in Japan and environmental protection initiatives in
the Asia-Pacific region.

33.3

40.0

17.1

15.1

57.1

12.5

Male

month in FY2022. As part of the effort to reduce

11,545

number of times expressways were used on service calls dropped 31% from FY2019 to FY2020. In FY2021,

no more than 10 hours of overtime on average per

100

FemaleAverage overtime hours per month

9,107

overtime, in FY2020 we introduced a prior approval

FY2019FY2020

FY2021FY2019FY2020

FY2021system to keep overtime work at reasonable levels
and increase operational efficiency. As a result, the percentage of employees taking childcare

6.1

5.9

FY2020

FY2021leave and the amount of overtime have been trending as shown on the right.

Development of employees and operation partners
JBR is working to foster our personnel and lay a foundation for job satisfaction. This includes trainings for all
employees and building a staff development program using personnel evaluations and feedback. Using web
conferencing systems and other means, we gave an average of 4.7 trainings per employee in FY2021. This is a
big recovery in training levels over the 1.9 trainings on average the previous year, when the COVID-19 pandemic
affected our schedule. We will continue to systematize training participation and will examine and establish a
training plan for management
personnel.
In terms of both sales andservice, we recognize how important
it is to maintain and enhance theservice quality that our operation
partners provide. For that reason,
we have written textbooks that
we use to develop these partners.
At meetings for our operation
partners, we share information about
accidents and claims and work toraise awareness of good manners.

Cover to JBR textbook, Plumbing Edition

At a meeting for operation partners

29

Japan Best Rescue System Co., Ltd.

Japan Best Rescue System Co., Ltd.

30

Social Initiatives

Chapter 3 Sustainability

Basic stance on society

Support for Nagoya City Board of Education initiative

In addition to responding to social issues through our business activities, JBR engages in a variety of social initiatives as a corporate citizen. When we are fostering new
businesses, we always emphasize providing a pathway to solve social issues. And in our social initiatives, we emphasize achieving sustainable communities.

In July 2021, JBR registered as a “corporate partner program for promoting
parental education” of the Nagoya City Board of Education. As such, weoffer employees who are children’s guardians the opportunity to experience

Fostering sustainable new businesses“parental education.” Specifically, we are continually working to minimize
employee overtime and raising awareness with an initiative to encourage
employees to have meals with their families.

Development of pregnancy insurance with focus on postpartum depression and treatment for infertility for second or later pregnancy
As part of our effort, Group company Japan Small Amount & Short Term Insurance Co.,
Ltd. together with Karadanote Inc. started offering Parenting Mutual Support Insurance &including articles describing work at JBR and
Parenting Mutual Support Insurance

Parenting Risk Sharing in January 2022. The pregnancy insurance is focused specificallyThree characteristics of Parenting Risk Sharing

on postpartum depression and infertility treatment for the second pregnancy and beyond.

1 Women who are pregnant can join the insurance. Subscribers pay no

The product is the first of its type in Japan.* Women covered under this plan are grouped

premiums during pregnancy but are subject to paying premiums
from the month the child is bornby their children’s ages and share risk together. If a situation happens that is covered by
the plan, subscribers support each other with payments made after the fact.

“Work Notebook for Elementary School Students,” a publication backed
by the Nagoya City Board of Education, has carried the content we provided,

2 There are no premiums to pay if none of the subscribers in theinterviews with employees. These articles use
language understandable to children to makework at a local company more appealing. We
anticipate this will spark children’s interest in
the working world and get them to consider

Work Notebook for Elementary School Students

local employment as adults.

Group have a claim
3 Premiums are variable but capped, even if there are many claims*Based on research by Karadanote as of December 31, 2021

Installation of AED
We installed an AED at the reception desk of JBR’s Nagoya Head Office because weRealizing sustainable communities

want to be prepared in case an employee, visitor, or nearby resident has an emergency.
We train our employees in use of the AED and chest compression (cardiac massage) withmannequins so they can provide lifesaving care in an emergency.

KidZania official sponsor
JBR endorses the fundamental Philosophy of Kidzania, which is to prepare children for life
by helping them to experience different occupations and social situations. We host exhibits
in the pavilion called Climbing Building at the KidZania locations in Tokyo and Koshien.

BCP initiatives
JBR launched our BCP Project in July 2019. We established a business continuity plan (BCP) that anticipates a large-scale disaster. We maintain rules and build
operating structures corresponding to business operations risks and computer system risks.

Core system backup measures

Building capacity to continue taking calls under emergency conditions

JBR reconsidered the configuration of our old system, which presented

In our initiatives for ensuring we can continue taking calls under emergency

challenges to business continuity. We began using a new ERP system in Octoberconditions, we completed consolidating CTI-using systems and moving them to theMore and more of JBR’s employees are continuing to work while raising children. That is2021. The new system uses cloud computing technology, which enables more

cloud in FY2020. We have a system in place that lets call center operations to be

one reason we want to contribute to initiatives for protecting children. Out of that desire,reliable data backups and a more stable business continuity system.

done remotely.

Support for group operating child abuse prevention hotline

we became a corporate member of CAPNA, a nonprofit that operates a child abuse

Communication with investors

prevention hotline, and we support its work with donations.

JBR actively promotes communication with stakeholders. We hold periodic
financial results briefings for investors, along with more than 100 meetings

31

Japan Best Rescue System Co., Ltd.

FY2020annually with institutional investors, and several seminars annually for individual

Meetings with institutional
investors

investors.

Seminars for individual investors

FY2021

166

218

5

5

Japan Best Rescue System Co., Ltd.

32

Corporate Governance

Chapter 3 Sustainability

Basic stance

Evaluating the effectiveness of Board of Directors

The JBR Group works to build good relations with all stakeholders and offer them satisfying services to ensure we can achieve sustained growth and increase corporate
value over the long term.

The effectiveness of the Board of Directors is analyzed and evaluated to improve its functioning as based on the Corporate Governance Code set out by the Tokyo Stock
Exchange.

Analysis and evaluation method

Overview of corporate governance
The JBR Group has the following organs for corporate governance: General Meeting of Shareholders, Board of Directors, Audit & Supervisory Committee, and Accounting
Auditor.
Based on a decision made at the 25th Ordinary General Meeting of Shareholders on December 24, 2021, JBR is transitioned to being a company with an audit andsupervisory committee. The aim is to further strengthen the supervisory function of the Board of Directors.

Corporate governance structure including internal control system (as of December 27, 2021)

Internal Officers

Outside Officers

General Meeting of Shareholders
Appoint & dismiss

Appoint & dismiss

ReportReportAppoint & dismiss

1 Board of Directors(excluding Directors who are Audit& Supervisory Committee Members)

Representative Director

Report2 Audit & Supervisory Committee

Audit & supervise

3 out of 5 are Outside Officers

ReportBased on the analysis and evaluation results, the Board of Directors concluded that in general the board was appropriately and effectively carrying out its roles and duties.
The evaluation noted that in FY2021, proposals presented to the Board of Directors were well organized and analyzed, with references and information that were easy
to understand, and that there was constructive discussion and exchange of opinion. The findings also confirmed issues that will need to be addressed going forward inlight of revisions to the Corporate Governance Code. Those include enhancing discussions on risk and crisis management systems in the Group as a whole, discussions
that are expected to happen during the process of carrying out the management strategy and management plan; expanding supervisory and monitoring systems at
subsidiaries based on the Basic Policy on Internal Control; and reflecting matters relating to ESG response and SDG initiatives in our management strategy.

2 out of 3 are Outside Officers

ReportCollaborate

Collaborate

Mindful of JBR’s move to the Prime Market, the Board of Directors will work to further improve its ability to execute as part of its proactive efforts on the above issues.
Accounting Auditor

Collaborate

Internal Audit Office
Collaborate
Audit

ReportOverview of analysis and evaluation results

Response going forward

Directors

Select & supervise

For the first time in FY2021, an external organization conducted a web-based survey of all Directors and Auditors, including Outside Officers, and collected andtallied the findings. The purpose was to build awareness of JBR’s position from an objective, third-party point of view. Survey questions covered the makeup of theBoard of Directors, its operating, discussion, and monitoring functions, as well as support systems and training for Directors and Auditors, dialogue with shareholders(investors), and more.

Directors
Auditors

Audit

ReportAudit

ManageGuide management

Groupcompanies

Audit

Officers’ remuneration, etc.
The maximum remuneration for Directors (excluding Directors who are Audit & Supervisory Committee Members) as decided upon at the 25th Ordinary General Meetingof Shareholders on December 24, 2021 is ¥200 million annually (¥20 million for Outside Directors). For those Directors who serve concurrently as employees, thisamount does not include their employee salary.
The maximum compensation for Directors who are Audit & Supervisory Committee Members as decided upon at the same meeting is ¥40 million annually.
As of the time when data was submitted, there are five Directors (excluding Directors who are Audit & Supervisory Committee Members) who are paid remuneration
under these limits (includes three Outside Directors) and there are three Directors who are Audit & Supervisory Committee Members (including two who are Outside
Directors) who are also paid under these limits.

Support operations

Management Strategy Division
Position
Corporate Planning Department

Total
remunerationand other
compensation

Total remuneration and other compensation, by type (JPY thousand)Fixedremuneration

Performancelinked
remuneration

Retirement
allowances

5,496

5,496

－

－

－

2

9,270

9,270

－

－

－

1

21,24021,240－－－6(JPY thousand)Collaborate

Administration Division

Business units

Administration Department

Directors(excluding Outside Directors)

Auditors(excluding Outside Auditors)*Figures on the left include one Outside
Auditor who stepped down as of thePortion of amountend of the 24th Ordinary General
Number ofon left that is
officers receiving Meeting of Shareholders on December
17, 2020.
non-monetary
remuneration*As of December 24, 2021, JBR has
compensation,
switched from being a company withetc.

a board of company auditors to acompany with an audit and supervisorycommittee. The remuneration andother compensation totals shown on
the left applied to the current businessyear prior to the switch to being acompany with an audit and supervisorycommittee.

Accounting & Finance Department

Outside Officers

Risk Management Department

Basic policy on remuneration of Directors (excluding Directors who are Audit & Supervisory Committee Members)
Because officer remuneration systems are an extremely important part of corporate governance, JBR established the following policy for determining individual
remuneration and other compensation for Directors (excluding Directors who are Audit & Supervisory Committee Members) at the Board of Directors meeting ofDecember 24, 2021.

1

2

33

Board of Directors

Audit & Supervisory
Committee

In principle, ordinary meetings of the Board of Directors are held once a month, while extraordinary meetings are held as needed. The Board of Directors
reviews measures and plans relating to important matters, responds to changes in the business environment, and supervises the execution of duties.
JBR appoints five Outside Directors who have deep experience from managing other companies or holding important government offices and are deeply
experienced and knowledgeable as certified public accountants and consultants. Their role is to express their opinion from an independent, objective point ofview and otherwise strengthen the corporate governance of JBR.
In principle, the Audit & Supervisory Committee meets at least once a month. Members audit operations, for example by attending meetings of the Board of
Directors and other important meetings. As necessary, they directly inquire with the Accounting Auditor on accounting matters and audit and supervise theexecution of duties by Directors. The committee also exercises its right as appropriate to state its opinion on the designation of Directors (excluding Directors
who are Audit & Supervisory Committee Members) and Directors’ remuneration, etc.

Japan Best Rescue System Co., Ltd.

In principle, remuneration paid to Directors (excluding Directors who are Audit & Supervisory Committee Members) consists of fixed remuneration and employee
salary.
● Remuneration of Directors (excluding Directors who are Audit & Supervisory Committee Members) is reviewed and revised each year to reflect the company’s
operating results, the individual’s contribution to those results, and the role expected of the individual.
● The level of remuneration of Directors (excluding Directors who are Audit & Supervisory Committee Members) is set to give Directors greater incentive to increase
corporate value. The level considers what is high enough to attract excellent talent and takes account of remuneration levels at other companies.
● If a situation occurs during the fiscal year that warrants changing the remuneration of Directors (excluding Directors who are Audit & Supervisory Committee
Members), the Board of Directors shall decide on that change, taking account of the situation.
●

Japan Best Rescue System Co., Ltd.

34

Corporate Governance

Chapter 3 Sustainability

Internal control system

Compliance

In principle, ordinary meetings of the Board of Directors are held once a month, while extraordinary meetings are held as needed. The Board of Directors reviews

JBR appointed our Representative Director as the person who takes general responsibility for compliance overall. Under his strong leadership, we regularly and continuallyvarious plans and measures relating to important matters, responds to changes in the business environment, and supervises the execution of duties. Employee training

train our Directors, Executive Officers, and employees as based on our Corporate Code of Conduct, Compliance Guidelines, Compliance Manual, and Compliance Program.

is designed to give the highest priority to ensuring penetration of the Group’s Corporate Code of Conduct, Compliance Guidelines, and internal reporting system among

By making our Directors, Executive Officers, and employees fully aware of the spirit and meaning of JBR’s Corporate Philosophy, we help them to understand that compliance

all Group company employees. Additionally, we have employees with management responsibilities take trainings from outside organizations and the like as appropriate. In

is the cornerstone of our business activities.

principle, the Audit & Supervisory Committee also meets at least once a month.
At the Board of Directors meeting on December 24, 2021, JBR decided to adopt the following internal control system to ensure appropriate operations, based on
Article 399, Paragraph 13-1-1-c of the Companies Act of Japan.
［ 1 ］System for ensuring that execution of Director and employee duties complies with the law and our Articles of Incorporation［ 2 ］Systems related to the safekeeping and management of information relating to the execution of duties by Directors［ 3 ］Regulations and other systems concerning control over risk of loss
［ 4 ］System for ensuring that Directors’ duties are executed efficiently［ 5 ］The following systems and other systems for ensuring that business operations of the business group, which consists of the Company and its Group companies, are performed
properly
・System related to reporting to the Company on matters concerning the execution of duties by subsidiaries’ directors, etc.
・Regulations and other systems concerning control over risk of loss at subsidiaries
・System for ensuring that duties of directors, etc., of subsidiaries are conducted efficiently
・System for ensuring that execution of duties of director, etc., and employees of subsidiaries comply with the law and our Articles of Incorporation
・Other systems for ensuring that business operations of the business group, which consists of the Company and its Group companies, are performed properly［ 6 ］Matters concerning those employees when the Audit & Supervisory Committee suggests posting of employees to assist in its duties［ 7 ］Matters relating to the independence of employees in［ 6 ］above from directors and matters relating to the effectiveness of instructions of the Audit & Supervisory Committee tothose employees［ 8 ］Systems for directors and employees to report to the Audit & Supervisory Committee and systems relating to other reports to the Audit & Supervisory Committee［ 9 ］Systems for ensuring that persons who report as in［ 8 ］above are not treated unfavorably because of such reporting［10］Matters relating to procedures for prepaying or repaying costs associated with execution of duties of Audit & Supervisory Committee Members and policies on the handling of othercosts and liabilities associated with execution of those duties［11］Other systems for ensuring that the Audit & Supervisory Committee performs its audits effectively
For details, see JBR’s annual securities report (Japanese only).

https://www.jbr.co.jp/ir_info/irlibrary_report/

Response to the Corporate Governance Code
Except for the three items below, JBR is performing everything expected under the code as revised in June 2021, including content associated with our move to thePrime Market.
The reason why we are not performing those three items is described below. We will continue to examine ways to achieve optimal corporate governance.

Supplementary Principle 3.1.3: Sustainability initiatives
Under our powerful governance system and our Corporate Philosophy that “We Help People in Need,” JBR aims to solve social issues through our business as
we pursue social sustainability. The fundamental philosophy of the SDGs, which is to “Leave No One Behind,” perfectly matches our own idea of what we want toachieve by growing our business. Therefore, sustainability initiatives are an important issue and indispensable for increasing JBR’s corporate value over the mediumto long-term. We are specifically considering steps like establishing a sustainability committee as a way to disclose and provide sustainability information.

Supplementary Principle 4.1.3: Succession plan for the CEO
At this time, Representative Director & CEO Nobuhiro Sakakibara leads JBR as its executive officer. He not only serves as a management leader but contributes
to enhancing JBR’s corporate value. However, we recognize that successor planning is an important issue and have established an officers personnel system todevelop new executives. Under this system, we have clearly stated the roles expected of Directors and Executive Officers and set clear standards for promotion,
demotion, and reappointment. Furthermore, we develop executives by evaluating candidates in terms of their business results and behavioral characteristics asrequired of an organization’s leader. The evaluation process is objective and built to ensure appropriateness, transparency, and fairness.

Supplementary Principle 4.10.1: Establishment of voluntary nomination committee and remuneration committee
JBR does not have a voluntary nomination committee and remuneration committee at this time because we appoint five Independent Outside Directors, who makeup a majority of the Board of Directors. Going forward, we will consider establishing independent nomination and remuneration committees to strengthen the
independence and objectivity of Board of Directors functions relating to Director nomination, remuneration, etc., and to enhance accountability.
For details, see JBR’s Corporate Governance Report (Japanese only).

35

Japan Best Rescue System Co., Ltd.

https://www.jbr.co.jp/ir_info/governance/

Compliance Guidelines［ 1 ］Earn customer trust［ 2 ］Practice appropriate trade with business
partners［ 3 ］Practice appropriate accounting andinformation disclosure［ 4 ］Comply with laws and regulations［ 5 ］Comply with Japan’s Act on theProtection of Personal Information［ 6 ］Ensure that JBR Group and member
shops comply with laws and regulations［ 7 ］Avoid insider trading［ 8 ］Handle shareholder information
appropriately［ 9 ］Ensure that Directors perform their dutyof loyalty and restrict them from engaging
in competing business or business with aconflict of interest［10］Prohibit any action that benefits antisocial
forces［11］Respect intellectual property rights

For details, see the following URL (Japanese only).

［12］Use information systems
appropriately［13］Keep accurate records［14］Comply with Japan’s Labor
Standards Act and prohibit
discrimination［15］Protect privacy［16］Keep workplaces safe
［17］Maintain thorough internal
regulations［1 8 ］Prohibit acts where there
is conflict of interest［ 19 ］Behave sensibly［2 0］Provide consultation
services［ 2 1］Apply appropriate
penalties

https://www.jbr.co.jp/corporate/compliance_guideline/

Risk management
Following is a description of the major items that JBR managers believe are potential risk factors to the development of the Group’s business. Moreover, in the interest of
proactive information disclosure to investors, we also disclose information about other concerns that do not necessarily fall under these risk factors if they seem important
to investors making investment decisions.

<Risks related to business model>
Securing operation partners and maintaining service quality
Our operation partners are the critical service infrastructure of the JBR Group. They are in
an important position because they are the ones who interact directly with customers at
the work site and do the work. The quality of the services our operation partners provide
is directly connected with the Group’s service quality and the level of satisfaction that
customers feel. The Group demands that our operation partners provide high-quality
service to customers, but if the absolute number of service providers who can meet ourservice standards is not enough and we cannot maintain an adequate service infrastructure,
there is a risk of this affecting how well the Group performs its work.
To counter this risk, we look at a number of things when selecting operation partners
who will provide site services. With a particular emphasis on the completeness of ourservice infrastructure, we assess candidates based on JBR standards, conduct recruiting
interviews, and manage credit. We also ensure service quality by periodically doing
interviews, giving instruction on manners and technology, and giving additional training
depending on the situation. However, operation partners manage their own businesses
independently from JBR. As such, there are limits on the instruction and supervision we canprovide, so there is potential risk. If an accident or other problem occurs while a operation
partner is providing services to customers, insurance covers part of the risk, but such
incidents could hurt our reputation. Therefore, there is a risk of harm to our brand image
and a risk of losing trust, which could impact the Group’s operating results.
Risks related to competition
The business of the JBR Group requires a service infrastructure network large enough toprovide sufficient service to customers. This makes it hard for new businesses to enter themarket, and at present there is not much impact from excessive competition and the like.
As the market grows, however, competition with new and existing companies could intensify
and impact the Group’s operating results.
Additionally, the emergency response services that JBR provides do not require
government approval or special qualifications or technology to enter the market. For thatreason, if a competitor were to limit its business to a few regions or specialize in justsome of the services we offer our customers, it could potentially develop a business in ashort time. This could impact the Group’s operating results to a degree in those regions orservices.

Business development
In our daily life troubleshooting services, a key issue for the JBR Group is to precisely
determine market needs and business opportunities and boldly dare to address them. We
will continue to actively expand our business by developing business alliances that makemore use of the Group’s service infrastructure network and developing new businesses andproducts.
However, there is a great deal of uncertainty about the future associated with developing
business alliances, new businesses, and new products. Therefore, if the future is very
different than we first anticipated, it could potentially impact the Group’s operating results
going forward. Moreover, dissolution of such business alliances in the future could also
potentially impact the Group’s operating results. Other concerns relate to further expansionof our business domain by business and capital alliances or M&A. In every case, we willtake steps to conduct detailed reviews of financial, contract, and other matters in advanceand make decisions only after adequately considering risk. However, in addition to futurebusiness uncertainties, problems could occur that advance reviews did not catch. A
situation like that could potentially impact the Group’s operating results, such as by making
it necessary to take an impairment charge on goodwill.
Following is a list of matters without further description. For details, see JBR’s annual
securities report (Japanese only).

https://www.jbr.co.jp/ir_info/irlibrary_report/<Organizational risks>
Personnel planning and organization/risks related to competition
Development of CEO successor<Internal system risks>Core system<Other risks>
Dilution of shares from exercise of stock options
Protection of personal information
Trademark rights
Major disaster, etc.
Infection with COVID-19
ComplianceJapan Best Rescue System Co., Ltd.

36

Corporate Governance

Chapter 3 Sustainability

Officers and their skills (as of December 24, 2021)

Officer skills matrix
The matrix below outlines the skills of the Board of Directors overall (knowledge, experience, and capabilities that are particularly expected of Directors) that are essential

Officers

for JBR’s sustained growth and increasing its corporate value over the medium to long term.

Representative Director

Skills required
depending on nature ofbusiness

Knowledge, experience, and capabilities that are particularly expected
Name

Position
Attribute

Representative Director

Nobuhiro Sakakibara
Directors

Corporate
Sustainability
management

Nobuhiro
Sakakibara

Representative Director

Mitsuhiro
Wakatsuki

Director

Norio Shiraishi

Director

Outside,Independent●

Housei Iwamura

Director

Outside,Independent●

Akio Hamaji

Director

Outside,Independent●

Masakatsu
SawadaDirector (Full-Time Audit &Supervisory Committee Member)

Tetsuro Yoshioka

Director (Audit & Supervisory
Committee Member)

Outside,Independent●

Hiroyuki Oshida

Director (Audit & Supervisory
Committee Member)

Outside,Independent●IR

Finance & Investment
accounting & M&A

Organization
Legal & risk International Sales && human Governance Innovation management
outlook marketing
resources

●

●
●

●

●

●

●

●
●

●
●

●

●

●

●

●

●

●

●

●

●

●
●

●

●

●

*The table above does not list all the knowledge, experience, and capabilities of each Director.

Reason for appointment of Outside Officers

Directors

Director (Outside, Independent)

Director (Outside, Independent)

Director (Outside, Independent)

Mitsuhiro Wakatsuki

Norio Shiraishi

Housei Iwamura

Akio Hamaji

Name

Reason for appointment

Norio Shiraishi

Shiraishi was appointed because he has served as a director at multiple enterprises, has great experience and wide-ranging insight as along-time manager, and is thoroughly familiar with corporate management. He also meets all the requirements to serve as an independent
officer under stock exchange rules and has no particular interests in the Company, and therefore it was determined he has no conflict ofinterest with ordinary shareholders and he was appointed to serve as an Independent Officer.

Housei Iwamura

Iwamura was appointed because as a certified public accountant, he has held the additional post of outside auditor at multiple enterprises
and has great experience, an extensive track record, and wide-ranging knowledge and insight. He also meets all the requirements to serveas an independent officer under stock exchange rules and has no particular interests in the Company, and therefore it was determined hehas no conflict of interest with ordinary shareholders and he was appointed to serve as an Independent Officer.

Akio Hamaji

Hamaji was appointed because he has great experience and wide-ranging insight as a long-time manager and is thoroughly familiar withcorporate management. He also meets all the requirements to serve as an independent officer under stock exchange rules and has no
particular interests in the Company, and therefore it was determined he has no conflict of interest with ordinary shareholders and he wasappointed to serve as an Independent Officer.

Tetsuro Yoshioka

Yoshioka was appointed because he held an important position for Shizuoka Prefecture and has great experience, an extensive trackrecord, and wide-ranging knowledge and insight as the representative director of another firm. He also meets all the requirements to serveas an independent officer under stock exchange rules and has no particular interests in the Company, and therefore it was determined hehas no conflict of interest with ordinary shareholders and he was appointed to serve as an Independent Officer.

Hiroyuki Oshida

Oshida was appointed because he has great experience and insight as a consultant. He also meets all the requirements to serve as anindependent officer under stock exchange rules and has no particular interests in the Company, and therefore it was determined he has noconflict of interest with ordinary shareholders and he was appointed to serve as an Independent Officer.

Director, Audit & Supervisory Committee Member

37

Director, Full-Time Audit & Supervisory
Committee Member

Director, Audit & Supervisory Committee
Member (Outside, Independent)

Director, Audit & Supervisory Committee
Member (Outside, Independent)

Masakatsu Sawada

Tetsuro Yoshioka

Hiroyuki Oshida

Japan Best Rescue System Co., Ltd.

Japan Best Rescue System Co., Ltd.

38

Corporate Governance

Chapter 3 Sustainability

Comments from Directors

Markets have to expand if enterprises are to achieve sustained growth. JBR’s services

My work up to now has been to build a more effective governance system, such as

can easily be added to its client-partners’ existing services. The fact that JBR’s market ismonitoring the building and operation of an internal control system and maintaining theso expandable and creative is a great strength. My aim is to take the knowledge I haveenvironment within the company, with a focus on the efficiency of auditing activities.

learned as an executive at listed companies for many years and harness it to increase

In an age that values sustainability, the pursuit of the Corporate Philosophy “We Help

the corporate value of JBR, an enterprise that focuses on helping people in need. I will

People in Need” has a direct connection to realizing a sustainable society. By auditing

do all that I can to enable JBR to keep creating the services society needs, expandand supervising the execution of duties by JBR’s Board of Directors and Executive

markets, and achieve business growth by continually building relationships that benefit

Officers, I will continue to consider the interests of the company’s various stakeholders

four parties: customers, operation partners, sales partners, and JBR.

and strive to collaborate with them to realize sustained growth and the creation of
corporate value over the medium to long term. By so doing, I hope to help establish a
corporate governance system worthy of society’s trust.

Norio Shiraishi, Independent Outside Director

Masakatsu Sawada , Director (Audit & Supervisory Committee Member)

My intention is to help increase JBR’s corporate value with my experience and

The most important point in JBR’s growth strategy going forward comes down to thisknowledge as a certified public accountant. JBR got where it is today because it hasquestion: how shall we respond to consumers who value safety and peace of mind andconstantly undertaken new challenges. There is always risk when stepping into new

want an efficient economic life in a post-pandemic, carbon neutral world, and what kinddomains, but I hope JBR, while adhering to its Corporate Philosophy, will continue toof new services shall we create and offer to them? I remain committed to expressing mytake challenges. Committed as it is to help people in need, JBR has an important role toopinion candidly on topics like how to organize our governance system for a changing

play as part of society’s infrastructure. As it continues to grow as a business, I hope JBR

business environment. As an Audit & Supervisory Committee Member, I will be careful

will be a company that supports society as a “third safety net” after police andto always get the latest information on society and the like and make sure JBR risk

emergency services.

management uses that information. I will closely observe JBR’s consumer-focused
operations and the actions of its organizations and employees.

Housei Iwamura, Independent Outside Director

Tetsuro Yoshioka, Independent Outside Director (Audit & Supervisory Committee Member)

To grow, an enterprise needs products and services different from what others

As a Director (Audit & Supervisory Committee Member), I will focus on ensuring theoffer. To continue in existence, however, an enterprise must foster strong corporate

suitability of JBR’s business management and its appropriateness in terms of seizing

ethics and build an internal control system and risk management system. Nowadays,

opportunities for growth. I will work to actively contribute to these aims from mymoreover, enterprises are expected to respond to ESG needs and the SDGs. Under

independent position as an Outside Director, using my experience and knowledge andits new Medium-Term Business Plan, JBR has defined its Vision as “We create theconstantly refining them in an age and environment where things continue to change

best framework and services for giving people peace of mind by getting close to theirat a rapid pace. In particular, at a time when the COVID-19 pandemic has caused

daily lives.” This is a way of thinking conducive to well-being, one of the SDGs. My

digitalization to progress all at once, it is a critical duty of JBR to promote DX from ahope is to use my experience in corporate management to bring this new perspective

strategic perspective and accurately grasp and manage the risks that are increasing as aand contribute to the growth and development of the company by offering advice andresult.

supervision as an Outside Director.

Akio Hamaji, Independent Outside Director

39Japan Best Rescue System Co., Ltd.

Hiroyuki Oshida, Independent Outside Director (Audit & Supervisory Committee Member)

Japan Best Rescue System Co., Ltd.

40

10-Year Financial and Non-Financial Information

Chapter 4 Data

Major financial data
FY2012

Consolidated fiscal year

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021(JPY million)

7,438

10,405

11,621

12,117

11,552

12,396

11,766

12,01012,057

13,460Operating profit

607

189

329

597

823

889

1,430

1,638

1,367

1,408

Ordinary profit

544

141

278

558

878

952

1,644

1,967

1,798

1,740

Profit attributable to owners of parent

259

-486

31

-176

27

886

1,192

1,639

997

56

Cash flows from operating activities

576

-151

1,619

1,316

1,666

1,670

2,177

1,659

2,191

1,654

Cash flows from investing activities

157

-889

-1,407-568

490-1,544-303-3,167-2,981

1,061

Cash flows from financing activities

19

957

1,280

-2,421-772-1,268

-474

1,822

-165

-120

6,376

6,293

7,786

6,113

7,498

6,356

7,756

8,071

7,115

10,975

961

1,461

1,962

2,631

3,411

4,590

5,661

6,710

7,640

9,266

Gross assets

9,640

11,767

13,278

11,93012,32813,22014,86518,761

21,20428,175Equity capital

2,727

1,834

5,426

5,336

5,439

5,373

6,041

7,897

7,592

11,324

2,860

1,968

5,595

5,404

5,439

5,373

6,042

8,104

7,907

11,6688.14-16.45

0.94

-5.12

0.81

27.30

38.05

51.81

31.82

1.83

3

3

2

3

6

9

11

15

16

17

87.17

64.03

157.99154.78158.65170.50193.12

246.94245.54333.70Gross net sales margin

45.3

35.3

34.3

35.3

40.7

42.7

47.1

46.6

46.7

42.8

Operating profit margin

8.2

1.8

2.8

4.9

7.1

7.2

12.2

13.6

11.3

10.5

Net sales

Cash and cash equivalents at end of period
Unearned revenue and long-term unearned revenue at end of period
End of consolidated fiscal year

(JPY million)

Net assets
Per-share indicators(JPY)

Earnings per share
Dividends per share (year)*
Net assets per share
Financial indicators

(%)

871

507

718

973

1,067

1,038

1,590

1,812

1,579

1,653

SG&A ratio

37.2

33.4

31.5

30.4

33.6

35.5

34.9

32.9

35.3

32.3

ROE (return on equity)

9.4

-26.5

0.6

-3.3

0.5

16.4

20.9

23.5

12.9

0.6

EBITDA(JPY million)

5.9

1.3

2.2

4.4

7.2

7.5

11.7

11.7

9.0

7.0

164.6

334.7

69.3

27.1

16.4

13.0

11.8

21.6

38.2

34.4

28.3

15.6

40.9

44.7

44.1

40.6

40.6

42.1

35.8

40.2

19.2

ー

314.9

ー

270.4

15.8

32.6

20.3

32.8

689.6

36.9

ー

212.8

ー

740.7

33.0

28.9

29.0

50.3

929.0

ROA (return on assets)
D/E ratio(times)Equity ratio
Price-earnings ratio(times)Dividend payout ratio*Dividends are retrospectively restated to account for a 5-for-1 stock split on October 1, 2013 and a 100-for-1 stock split on April 1, 2014.

Non-financial data
FY2012

Subscribers

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

1,010

1,339

1,807

2,049

2,336

2,496

2,522

2,482

2,950

3,940

Members

948

1,245

1,683

1,889

2,089

2,223

2,247

2,222

2,399

3,347

Persons insured*

61

94

124

159

246

272

274

259

550

593

Employees

136

184

189

158

252

232

217

226

244

345

Average number of temporary personnel not included in the above

93

137

142

153

167

186

160

233

158

330

Employees

94

108

123

124

181

201

181

186

195

178

Average number of temporary personnel not included in the above

89

116

129

146

156

182

153

228

154

133

Employees(thousands)(Persons)

Consolidated

Non-consolidated*For FY2015 and earlier, “persons insured” refers to the number of contracts in force.

41

Japan Best Rescue System Co., Ltd.

Japan Best Rescue System Co., Ltd.

42

Business Performance and Financial Summary (Consolidated)

Chapter 4 Data

FY2021 operating results

Performance by segment

In the fiscal year 2021, Japan’s economy was affected by the COVID-19 pandemic for a long time, which restricted economic and social activities. However, with

<Emergency Business>

Attracted fewer customers on the web, primarily due to competitors’ sites, resulting in a net sales decline of ¥1,325 million (down 11% YoY) and an operating
loss of ¥25 million during the term (compared to operating profit of ¥50 million the previous term).

the start of COVID-19 vaccination Japan, coronavirus cases are decreasing at a surprising speed, and lifestyles have slowly begun returning to normal. Against thisbackground, based on the philosophy that “we help people in need,” our Group significantly strengthened existing businesses and started to establish new businesses
through the services that our customers appreciate so much.
The JBR Group’s operating results for the term were as follows: net sales ¥13,460 million (up 11.6% YoY), operating profit ¥1,408 million (up 3.0% YoY), ordinary<Membership Business> The core Membership service QR Service for New Tenant saw steadily expanding sales and members increased at a more extraordinary pace than expected. Net
sales during the term were ¥6,974 million (up 15.1% YoY) with operating profit of ¥1,644 million (up 6.5% YoY).
<Insurance Business>

The number of subscribers to New Sumai Room Insurance, our core household belongings insurance, experienced strong growth, while JBR carried forward
reserves we had been building against future insurance payouts. Net sales during the term were ¥4,677 million (up 11.7% YoY) with operating profit of ¥361
million (up 6.8% YoY).

<Repair Business>

Percentage of high-unit-price service calls using special service technology increased, raising our unit price, while JBR stopped providing some low-unit-priceservice calls, resulting in net sales of ¥266 million (up 0.6% YoY) and an operating loss of ¥72 million during the term (compared to operating loss of ¥77
million the previous term).

<Life-tech Business>

Sharp electricity price rises in the PPS business hurt profitability, leading the Board of Directors, at their meeting on June 21, 2021, to decide to withdraw fromthe business. As previously announced, JBR completed withdrawal from the business as of September 30, 2021. Net sales for the term were ¥230 million (up169.7% YoY) with an operating loss of ¥222 million (compared to an operating loss of ¥153 million the previous term).

profit ¥1,740 million (down 3.2% YoY), and net profit attributable to owners of parent ¥56 million (down 94.3% YoY).
During the term, our Membership Business had 3.347 million active members and the Insurance Business had 593,000 insured.
Net sales (JPY million)

12,396■ Operating profit / ■ ordinary profit (JPY million)

Profit attributable to owners of parent (JPY million)

1,967

1,639

13,46011,766 12,010 12,057

1,644 1,638
1,430

1,798
1,367

1,740
1,192

1,408

952

997

886

889

Financial position

56
FY2017FY2018FY2019FY2020

FY2021FY2017FY2018FY2019FY2020

FY2021FY2017FY2018FY2019FY2020

Factors causing ordinary profit to vary

Impact of soaring PPS business procurement
prices in Jan. 2021.
Finished withdrawing from the businessas of Sept. 30, 2021.

(JPY million)

+57

2,000

–44

1,950

–73

1,900

+168

1,850
1,800

Started taking spot orders
from local governments in Q3;
the same service was offered in Q4

Since start of business,
cumulative losses were ¥376 million(FY2020: –¥153 million; FY2021: –¥222 million)–69

FY2021 cumulative
Net sales: ¥274 million
Gross profit: ¥57 million

1,798

1,650

1,740

18,761
13,220<Net assets>
Net assets amounted to ¥11,668 million (up ¥3,761 million YoY) due primarily to
JBR’s capital surplus rising ¥2,445 million. JBR’s equity ratio was 40.2% (a rise of 4.4
points YoY).

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

2,177
1,670

FY2020: 311 – 4 = ¥307 million gain
FY2021: 365 – 99 = ¥265 million gain

1,659 1,822

Steady growthof core businesses

COVID-19
prevention

M&A costs

Insurance policy
reserves

Life-tech
(PPS)

2,191
1,654
1,061

Non-operating
profit & loss

FY2021
ordinary profit–1,26814,865
11,668

5,373

6,042

FY2017FY2018

8,104

7,907

FY2019FY2020

FY2021<Cash ﬂow from investing activities>
Cash provided by investing activities totaled ¥1,061 million (compared to ¥2,981
million in outlays during the previous year). This is primarily the result of ¥1,145 million
in proceeds from withdrawal of time deposits and ¥756 million in proceeds from salesof investment securities, offset in part by ¥526 million in purchases of other intangible
assets.

FY2018<Cash ﬂow from financing activities>
Cash used in financing activities totaled ¥120 million (down 27.7% YoY). This is
primarily the result of ¥470 million in cash dividends paid, ¥392 million in repaymentsof long-term loans payable, and ¥210 million in redemption of corporate bonds, offset
in part by a ¥950 million increase in short-term loans payable.

–3,167FY2017

Japan Best Rescue System Co., Ltd.

21,204

–474

–165

–120

–1,54443

28,175<Cash ﬂow from operating activities>
Cash provided by operating activities totaled ¥1,654 million (down 24.5% YoY). Thisis primarily the result of posting ¥737 million in profit before income taxes and a ¥910
million increase in long-term unearned revenue.

–303

1,500

FY2020ordinary profit

40.2

in the term are as follows.

Gain or loss on sales of securities
1,550

40.6

35.8

<Liabilities>
Current liabilities reached ¥7,519 million (up ¥2,435 million YoY) due primarily to anincrease in short-term borrowings. Non-current liabilities came to ¥8,987 million (up¥774 million YoY) due mainly to an increase in long-term unearned revenue. Interestbearing liabilities amounted to ¥3,900 million (up ¥997 million YoY). As a result, total
liabilities amounted to ¥16,507 million (up ¥3,210 million YoY).

Cash flow (JPY million)

Posted gain on sales of securities, but also posted loss on sales.
The balance of securities as assets decreased by ¥661 million YoY.
Current policy is to continue to reduce the balance of securities.

1,600

40.6

equity ratio (%)

42.1

Cash and cash equivalents (“Cash”) stood at ¥10,975 million (up 54.2% YoY) at the end of the term. The status and contributing factors for each category of cash flow–98

The growth of the Membership Business, which has a stock- and subscription-typerevenue structure, is advancing the building of a long-term and stable revenue
base not easily affected by fluctuations in the external environment

1,700■ Net assets / ■ Gross assets (JPY million) /Cash ﬂow

Organic growth in core businesses is driving profitability gains

1,750

FY2021<Assets>
Current assets reached ¥15,399 million (up ¥4,502 million YoY) due primarily to
an increase in cash and deposits. Non-current assets came to ¥12,391 million (up¥2,404 million YoY) due mainly to an increase in goodwill. As a result, gross assets
amounted to ¥28,175 million (up ¥6,971 million YoY).

FY2019–2,981
FY2020

FY2021

Japan Best Rescue System Co., Ltd.

44

Stock and Corporate Information

Chapter 4 Data

Company overview

Status of shares (as of September 30, 2021)

Group companies

Company name

Japan Best Rescue System Co., Ltd.

Issuable shares

96,000,000

Representative

Representative Director Nobuhiro Sakakibara

Number of shares outstanding

34,688,000

EstablishedFebruary 1997

Number of shareholders

Capitalization¥780.36 million (as of September 30, 2021)

Employees

345 (consolidated basis) 178 (non-consolidated)(as of September 30, 2021)

Headquarters

Rescue Insurance Co., Ltd.
Otemachi Nomura Bldg. 7F, 2-1-1, Otemachi, Chiyoda-ku, Tokyo 100-0004
Underwriting of insurance on costs of fulfilling contractual obligations for corporations

Major shareholders (as of September 30, 2021)

Urban Net Fushimi Bldg. 5F, 1-10-20 Nishiki, Naka-ku,
NagoyaBoard members (as of December 24, 2021)

12,445https://www.rescue-sonpo.jp/

Shares held

Shareholding
ratio (%)

Nobuhiro Sakakibara

10,662,900

31.41

CHIC Holdings INC.

3,007,519

8.86

Custody Bank of Japan, Ltd. (Trust Account)

2,749,100

8.10

Name

President

Nobuhiro Sakakibara

Hikari Tsushin K.K.

2,106,100

6.20

Director & COO and General Manager ofManagement Strategy Division

Mitsuhiro Wakatsuki

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

1,904,200

5.61

Outside Director

Norio Shiraishi

Custody Bank of Japan, Ltd. (Trust Account 9)

1,533,800

4.51

Outside Director

Housei Iwamura

NOMURA PB NOMINEES LIMITED OMNIBUS –MARGIN (CASHPB)

1,454,400

4.28

Outside Director

Akio Hamaji

UH Partners 2, Inc.

1,218,800

3.59

Director, Full-Time Audit & Supervisory Committee
Member

Masakatsu Sawada

Sumitomo Realty & Development Co., Ltd.

1,000,700

2.94

Outside Director, Audit & Supervisory Committee
MemberTetsuro Yoshioka

Custody Bank of Japan, Ltd.
(Securities Investment Trust Account)901,100

2.65

Outside Director, Audit & Supervisory Committee
MemberHiroyuki Oshida*1 Shareholding ratios exclude treasury stock (750,822 shares).
*2 Shareholding ratios are rounded down to the second decimal place.

Executive Officer, General Manager of Operations
Division

Kumiko Urayama

Executive Officer, General Manager of Sales
Division

Kei Ebata

Executive Officer, General Manager of
Administration Division

Fumitaka Kondo

Japan Small Amount & Short Term Insurance Co., Ltd.
Otemachi Nomura Bldg. 7F, 2-1-1, Otemachi, Chiyoda-ku, Tokyo 100-0004
Sales of household belongings insurance for renters, among other products. Property managementcompanies and real estate agencies sell insurance as the company’s agent
http://www.japan-insurance.jp/

Japan Warranty Support Co., Ltd.
Otemachi Nomura Bldg. 7F, 2-1-1, Otemachi, Chiyoda-ku, Tokyo 100-0004
Sales and planning of warranty extension services for home equipment
https://www.jpwsp.com/

ACTCALL INC.
2-12-5, Yotsuya, Shinjuku-ku, Tokyo 160-0004
Membership Business sales and management of daily life troubleshooting service for renters
https://actcall.jp/

TSUNAGU INC.
2-12-5, Yotsuya, Shinjuku-ku, Tokyo 160-0004
Operation of call centers for renter member services primarily operated by ACTCALL
https://tsunagu-all.co.jp/

Shareholder notes
Business year

45

October 1 each year to September 30 of the nextyear

Shareholder registry Sumitomo Mitsui Trust Bank, Limited
administrator
1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Ordinary General Meeting
Held in December each yearof Shareholders

Listed stock
exchanges

First Section, Tokyo Stock ExchangeFirst Section, Nagoya Stock Exchange

Dates when list ofYear-end dividends September 30
shareholders eligible toInterim dividends March 31
receive dividends is finalized

Securities code

2453

Record date

September 30
If necessary, they will be announced in advance.

Share units

100 shares

Japan Best Rescue System Co., Ltd.

See the JBR website for the latest information on Group companies.
https://www.jbr.co.jp/affiliated/

How public
Announcements are posted on the JBR website
announcements are made https://www.jbr.co.jp/

Japan Best Rescue System Co., Ltd.

46