■Business Overview
1. Business Overview
Higashi TwentyOne ＜9029＞ provides logistics services centered on transportation and warehousing businesses, with its strength in logistics design capabilities that respond to individual customer needs. The reporting segment division is transportation business (transportation service business, office service (office relocation/moving) business, intravenous logistics business, building delivery business, mail service business, IT-related business, precision equipment transportation service), warehouse business (storage service business, document service business, logistics/distribution processing service), product sales business, welfare business, and other businesses. Sales and operating profit by segment for the past 5 periods (fiscal year ending 2020/3 to 2024/3) have been steadily expanding in each business, centering on the main transportation business and warehousing business. Furthermore, sales in the warehouse business have expanded drastically due to transactions with Amazon Japan, and sales of the product sales business have expanded drastically due to material procurement for the Kansai Electric Power Group (starting in October 2021). Also, there is a possibility that profits from the warehouse business will fluctuate due to temporary expenses etc. when a new large warehouse is established.
(1) Transportation business
a) Transportation service business
They deliver newspapers in the Kinki region, deliver beer makers and beverage manufacturers to the central and southern parts of Osaka, deliver nonferrous metals at steel mills, and transport operations for general shippers, etc.
b) Office service business
We are entrusted with corporate office relocation work. The project team performs planning that does not interfere with the customer's business according to the scale of the transfer, and supports operations related to pre- and post-processing, such as various procedures for each government office and neighborhood support before and after the relocation.
c) Intravenous logistics business
Intermediate processors and industrial waste collection and transportation companies from all over the country have been networked, and a system has been established that can respond to the collection and recycling of precision equipment, OA equipment, etc. Also, for paper resource processing such as confidential office documents, etc., we partner with paper companies and carriers selected all over the country to melt and process confidential documents packed in cardboard boxes without being seen by a third party. A total logistics system from collection to completion of recycling disposal provides services compatible with reducing environmental burdens such as resource reuse.
d) Building delivery business
In order to protect a comfortable environment within a large city building and maintain a smooth flow of goods, a logistics system has been constructed that oversees the flow of goods by collectively managing the entry and exit of goods within the building and jointly delivering them. In the Tokyo metropolitan area, they are entrusted with Tokyo Opera City, Roppongi Hills, Omotesando Hills, Sengokuyama Mori Tower, Ochanomizu Waterras Tower, Nippon Life Marunouchi Building, Astec Information Building, Jingumae Tower, Hareza Tower, and Kamiyacho Trust Tower; in the Chubu area, Nagoya Global Gate Tower; and in the Kansai area, Grand Front Osaka South Building, Nissay Shin-Osaka Building, Dojima Avanza Shindai Building, etc. In the fiscal year ending 2025/3, we plan to begin operation of the four newly contracted buildings: Akasaka Green Cross, Akasaka Trust Tower, Toranomon Arcea Tower, and Grand Green Osaka.
e) Email service business
DMs, catalogs, pamphlets, etc. are enclosed and sealed, and agency services such as various procedures are carried out from shipping to the handling post office.
f) IT-related business
The PC is being customized. We provide total support by utilizing the logistics infrastructure of the company group, from equipment procurement, kitting, and local settings to maintenance.
g) Precision equipment transportation services
Precision equipment is transported mainly from financial terminals such as bank ATMs, currency processing machines, and POS terminals. Transportation incidental work such as installation work is also carried out, and consistent services are provided from transportation to installation.
(2) Warehouse business
a) Storage service business
It provides storage and management services suitable for individual customer products, such as steel mills, home appliance manufacturers, and large-scale distribution centers for e-commerce. Furthermore, it is a comprehensive information system that is consistent from inventory management to logistics processing and delivery, and provides a function as a logistics base for customers. In the material procurement 3PL business for the Kansai Electric Power Group, the company directly purchases materials from power material supply manufacturers and sells them to construction companies, thereby improving the efficiency of material delivery/contract procedures for manufacturers and construction companies.
b) Document service business
Confidential documents and data of companies requiring special security are stored in trunk rooms certified by the Ministry of Land, Infrastructure, Transport and Tourism. Security systems such as vein authentication systems and 24-hour surveillance systems using video cameras have been put in place to achieve both convenience and safety. By adopting a consistent system, such as discarding (recycling) confidential documents that have reached the storage period, it provides a service that makes effective use of office space. We are also working on a digital solution business that converts documents and drawings stored on paper into data.
c) Logistics/distribution processing service business
It stores, packages, encapsulates, ships, and manages printed materials such as forms. It provides services that flexibly respond to customer needs according to each characteristic.
(3) Product sales business
It is a business derived from the warehouse business, and it sells various packaging materials, OA equipment, etc. utilizing logistics infrastructure, and has also been engaged in material procurement 3PL business for the Kansai Electric Power Group since 2021/10.
(4) Welfare business
We rent and sell welfare equipment (beds, wheelchairs, etc.) to nursing care support businesses.
(5) Other businesses
In the parking lot business, we operate multi-storey parking lots suitable for each region in major cities such as Osaka, Tokyo, and Nagoya. As peripheral businesses, the business support business operates the office convenience store “HILLS 21” within Roppongi Hills; in the PC erase business, confidential data is erased/physically destroyed, and used PC sales/recycling; and in the digital solution business, large amounts of documents and drawings are scanned and data stored.
(Author: FISCO Visiting Analyst Masashi Mizuta Exhibition)