Fundamental Management Policy
This section introduces the basic management policy of the directors. We explain here our corporate philosophy, dividend policy, medium- to long-term management strategies, and each of our challenges.
Basic Management Policy
Park24 Group’s philosophy is “We create new forms of comfort and convenience by responding to the needs of today and anticipating the needs of tomorrow.” Park24 Group provides comfort and convenience in forms both familiar and entirely new. We help to make urban environments and the lives of people living and working in them richer and pleasanter. We listen carefully to our customers to create services that meet the needs of the times and enhance sustainability.
We recognize that, to create comfortable services that meet the needs of the times and enhance sustainability, it is important to expand the scale of each business and enhance and develop services and we believe that our main business challenge is achieving and ensuring strong growth and profitability. Accordingly, we place the utmost emphasis on the rate of growth in recurring profit and strive to maintain double-digit sustainable growth.
The Group posted a loss for the fiscal year ended October 31, 2020, due to the impact of COVID-19 on all of its businesses, which caused a significant decrease in shareholders' equity. The Group considers rebuilding financial health to be one of the first priorities of the management and has established the goal of an equity ratio of more than 30% as one of the financial indicators targeted by the end of the fiscal year ending October 31, 2025.
Medium-term business strategies
The Group expects its management environment to continue to be harsh in the short term due to COVID-19. There are concerns over risk of a further fall in the global and Japanese economies due to the aggravation of the pandemic, and the impact of a decline in employment and income caused by a fall in corporate earnings and a decrease in consumer spending on the Group’s business performance are likely inevitable.
For the medium-term business environment, Park24 Group’s business environment is experiencing major changes with the emergence of new mobility concepts and rapid advances in technological innovation, including the shift from ownership to usage, automotive IoT applications, variations in vehicle fuel, and autonomous driving.
Looking to the future of the mobility society, the Group will further expand its four networks of people (members), cars (mobility), communities (destinations) and parking sites, and seamlessly connect these though the enhancement of services, thereby creating comfortable services that meet the needs of the times and enhancing sustainability both in Japan and other parts of the world.
In Parking Business, the Group will pursue expansion of its parking network by steadily developing parking sites while at the same time working to develop parking services that deliver greater levels of comfort. In particular, there are chronic shortages of parking spaces in Japan, and the Group considers the environment adequate for developing new parking sites based on a large supply-demand gap and expects stable growth.
In Mobility Business, the Group will push ahead with the integration of Car Rental and Car Sharing services to establish Times CAR, an extremely convenient new mobility service that allows customers to rent the type of car they want to rent when and where they want to rent it for as long as they want to rent it. Car Sharing service has been steadily growing as a mobility service easily accessible in daily life. Amid COVID-19, the service began to be recognized as a means of transportation suited for avoiding contact with an unspecified large number of people and crowded places, demand for which has been growing. Based on this background, both the numbers of members and users have been steadily increasing, which are expected to continue to increase substantially in the future. The Group will actively increase vehicles for the mobility service and rental office locations to expand its mobility networks.
In the communities that are our customers’ destinations, we will increase the number of affiliated stores offering the “Times PAY” cashless payment service, with the aim of delivering comfort to both affiliated stores and customers and expanding our network of communities (destinations).
To make services even more convenient for members through the seamless connection of cars (mobility), communities (destinations) and parking services respectively, we will focus on strengthening “soft” aspects through the development of apps, etc. We will also seek expansion in the scale of both corporate and private members by enhancing service convenience.
Overseas, the Group operates parking businesses in seven countries, including Australia, New Zealand, Singapore, Malaysia, the UK, Taiwan, and South Korea. As in Japan, the Group works to expand its parking site networks and to develop parking services in these countries. In Australia and the UK, constituting the core part of its overseas businesses, it will change the current business portfolio comprising mostly large and long-term contract parking sites to reduce business risk and raise profitability by developing short-term contract parking sites optimally suited for demand for parking sites in each country based on the strategy of minimization, diversification, and domination used in Parking Business Japan.
Through these measures, the Group aims to operate parking sites for 1,000 thousand vehicles and the mobility service for 100 thousand vehicles and acquire one million Times club members in Japan as targets for the fiscal year ending October 31, 2024.
The Park24 Group will aim for sustainable growth to become the world’s No.1 in terms of services as well as earnings as a corporate group that provides mobility services on a global scale. We will also endeavor to enhance our corporate value by fulfilling our corporate social responsibility and repay the trust and meet the expectations of all stakeholders.
Placing top priority on increasing its corporate value through higher profits, Park24 adopts the basis policy of distributing profits to its shareholders mainly in the form of a dividend paid from surplus funds, taking its internal reserve into account as necessary investment funds for the future.
We adopt a basic dividend policy of paying one dividend each year, at year end. The decision-making body for year-end dividends is the shareholders meeting.
Issues to be Addressed
The issues to be addressed to realize the new Group philosophy: “We create new forms of comfort and convenience by responding to the needs of today and anticipating the needs of tomorrow” are detailed below.
(i) Expanding the four networks
The Group will provide customers with an environment in which they can use the Group services more comfortably by expanding the scale of its four networks: people (members), cars(mobility), towns (destinations) and parking facilities. To this end, besides strengthening development capabilities and service proposal capabilities within each network, the Group will also promote utilization of ICT in areas such as business data analysis and data marketing.
(ii) Connecting the four networks seamlessly
The Group will provide customers with a comfortable environment for navigating and using the Group’s services by seamlessly connecting the four networks. To do this, we will promote activities such as the design of services based on marketing and the development of high value-added services using ICT.
(iii) Providing stable services
The Group recognizes that parking services and mobility services are social infrastructure. To ensure that each service can be provided in a stable manner, we will build an operating structure that allows Group services to be centrally managed and will also enact strict rules in order to maintain quality.
The Group also provides services to its customers through IT systems. Accordingly, we will work to ensure stable operation by making sufficient investment in IT systems and developing and recruiting human resources with IT skills.
(iv) Expanding business globally
The Group expanded its parking business to Asia in 2006 and to Oceania and Europe through M&A in 2017. At Secure Parking and National Car Parks, which joined the Group in 2017, we will instill the Group philosophy and seek to develop a shared awareness for the achievement of sustainable growth. The Group also recognizes that developing and strengthening its business foundation and improving and enhancing profitability though expansion are issues that need to be urgently addressed. We will address these issues by making significant improvements to the parking facility management and operation structure, entering new markets through the rollout of new services and pursuing other initiatives.
(v) Strengthening corporate governance
We believe that strengthening corporate governance as part of moves to strengthen the management basis is important in order to realize improvement in the Group’s corporate value through sustainable growth, We are, therefore, seeking to build a structure for accurate and speedy decision-making and business execution and an appropriate supervision and monitoring structure. Meanwhile, to further strengthen the effectiveness of corporate governance from the viewpoint of soundness and fairness, we will also endeavor to improve our self-purification ability by thoroughly implementing risk management, internal controls, and compliance initiatives across the Group, which will, in turn, help us to gain more trust from stakeholders.
(vi) Developing diverse human resources and creating an environment in which employees have job satisfaction
The Group creates a great deal of value in the form of the services its employees provide to its customers and believes that the development and recruitment of talent and the creation of an environment in which employees feel job satisfaction is essential for its sustainable development. In an age of discerning customers, employees are valuable management resources which determine a company’s competitiveness and the Group will, therefore, endeavor to develop and recruit human resources based on respect for diversity, in line with its human resources vision “human resources that can fully demonstrate their individuality and completely fulfil their expected roles while at the same time continuously developing their skills.”
(vii) Promoting health management
The Group has established a health management declaration to build a work environment that helps employees maintain good health and work vigorously for a long time. The Group aims to provide an environment that allows employees to voluntarily and actively improve their physical and mental health and to develop an active organization that achieves high performance.