Millea Holdings, Inc. (Millea Holdings) (President: Kunio Ishihara), announced a plan to establish a company providing staffing service by merging four companies, including its subsidiaries, subject to approval by relevant governmental authorities. Pursuant to the plan, three wholly owned subsidiaries of The Tokio Marine and Fire Insurance Company, Limited ("Tokio Marine") (President: Kunio Ishihara) and The Nichido Fire and Marine Insurance Company, Limited ("Nichido Fire") (President: Tomio Higuchi) and one non-group company are expected to become directly and wholly owned subsidiaries of Millea Holdings around March 2003. We intend to merge those four subsidiaries to form a new company around July 2003.
The four companies involved in the plan are listed below. Please refer to the Appendix for company profiles.
| Company Name | The Tokio Marine
Career Service
Company, Limited (TCS) | The Tokai Business
Service Company,
Limited(TBS) | The Nichido Fire
Career Service
Company, Limited(NCS) | Flora Staff
Company, Limited
(FS) |
| President | Yukio Hayama | Koichi Honda | Takehiko Kaneko | Hiroto Takasaki |
| Business | Temporary staffing | Clerical contracting | Temporary staffing | Temporary staffing |
The launch of the new company is intended to consolidate the staffing-related businesses of the Millea Holdings group. As a source of group earnings, the new company will strive to further expand on the business base of the four companies.
Temporary staffing industry-wide sales increased approximately 2.5 times, from 626.9 billion yen in 1995 to 1,560.6 billion yen in 2001(*). In the future, the business is expected to underpin reforms to Japan's employment system and the labor market, and is expected to expand.
Currently, TCS, TBS and NCS mainly service their respective parents and other Millea Holdings group companies. The new company is expected to actively enter new fields such as personnel placement, and aggressively develop business outside the group. It is targeting sales of 25.9 billion yen in fiscal 2005, up from 22.1 billion yen in fiscal 2001 (aggregate total for the four companies).
As a comprehensive staffing company, the new company is expected to contribute to the Millea Holdings Group by providing both quality staff infrastructure and strong earnings growth.
(*) Ordinary temporary staffing business sales for 2001, as reported in "Compilation of Results on the Temporary Staffing Industry," released by the Ministry of Health, Labor and Welfare on December 26, 2002.
Appendix
Company Profile
| Company Name | The Tokio Marine
Career Service
Company, Limited (TCS) | The Tokai Business
Service Company,
Limited(TBS) | The Nichido Fire
Career Service
Company, Limited(NCS) | Flora Staff
Company, Limited
(FS) |
| Established | June 1984 | July 1972 | September 1990 | December 1991 |
| Location | Otemachi,
Chiyoda-ku | Omori-Kita,
Ota-ku | Shibuya,
Shibuya-ku | Marunouchi,
Chiyoda-ku |
| President | Yukio Hayama | Koichi Honda | Takehiko Kaneko | Hiroto Takasaki |
| Business | Temporary staffing | Clerical contracting | Temporary staffing | Temporary staffing |
| Share Capital | 60 million yen | 10 million yen | 50 million yen | 20 million yen |
| Major Shareholders | The Tokio Marine
and Fire Insurance
Company, Limited 100% | The Tokio Marine
and Fire Insurance
Company, Limited 100% | The Nichido Fire
and Marine Insurance
Company, Limited 100% | Tokai Tsusho
Company, Limited
(*) 14.8%,
Other companies 85.2% |
| Total Assets | 4,151 million yen | 181 million yen | 191 million yen | 427 million yen |
| Shareholders' Equity | 1,889 million yen | 115 million yen | 77 million yen | 169 million yen |
| Fiscal Year End | December | December | March | November |
| Number of Directors (Full time) | 10 (8) | 7 (2) | 5 (3) | 7 (6) |
| Number of Employees | 140 | 73 | 10 | 24 |
| Number of Offices | 15 | 3 | 3 | 3 |
| Sales | 18,683 million yen | 425 million yen | 1,152 million yen | 1,911 million yen |
| Net Income | 253 million yen | 0 million yen | 3 million yen | 34 million yen |
Financial data (total assets, shareholders' equity, sales, net income) is as of / for the fiscal year ended March 31, 2002.
(*) Tokio Marine Group company
[TCS]: The Tokio Marine Career Service Company, Limited
[TBS]: The Tokai Business Service Company, Limited
[NCS]: The Nichido Fire Career Service Company, Limited
[FS]: Flora Staff Company, Limited
