Company Overview

1. History

And Do Holdings <3457> was founded in 1991 and started a real estate brokerage business in Kyoto Prefecture. In 1998, it entered the remodeling business, and in 2002, it opened a showroom in Kyoto City. After that, it expanded its business area to include the resale of used housing and real estate transactions. In 2006, based on the know-how of the real estate transaction brokerage business developed in-house, it started a franchise business, followed by the House Leaseback business (2013), real estate-secured lending business (2016), reverse mortgage guarantee business (2017), rental real estate franchise Rent Do business (2018), overseas business in Thailand (2019), business lending guarantee (2019), and various other businesses. As of the end of June 2024, the total number of franchise stores is 707, boasting the top performance as a real estate transaction brokerage chain nationwide.

2. Vision

The company's mission is to "Change the industry! Towards an industry for customers." aiming to achieve the realization of a real estate convenience store concept that promotes the openness of real estate information and provides safe and convenient services. The company aims to have 1,000 stores domestically and 0.05 million stores in Asia. In October 2020, after about 15 years, it renewed the brand's concept and logo. The new brand logo and slogan embody the company's intention to transform the real estate industry into an industry for customers by responding smartly to anything related to living as a one-stop smart real estate tech company that integrates IT and the web.

3. Features, Strengths

(1) Service development for solving social issues

The company has been providing solutions to the problems facing the real estate industry and Japanese society, contributing to the revitalization of the Japanese economy. The company's strength lies in having the industry's largest network in real estate transaction brokerage and the ability to develop and commercialize services and businesses like SPA (manufacturing-type retailing) industry-first. Examples of services and businesses developed ahead of other companies include franchise business specialized in purchasing started in October 2013, "House Do Home, Real Estate Purchase Specialty Store", enabling selling homes while living in them with the "House Leaseback Business" started in 2017, and the "Reverse Mortgage Guarantee Business" started in collaboration with financial institutions in October 2017. In recent years, the company has also been focusing on expanding services through collaboration with external companies. It opened a second home "SANU 2nd Home Ichinomiya1st" in Chiba Prefecture in cooperation with Sanu Co., Ltd., providing second home subscription services. Furthermore, in June 2024, it began providing the drone roof exterior inspection service "DroneRoofer," developed by partnering with CLUE Co., Ltd.

(2) Promoting DX for franchise stores

The company offers solution services tailored to the needs of the times as a "real estate service maker," providing services that integrate real store networks with IT and web.

For example, the company has its original core system for the real estate industry called "DO NETWORK." This system allows comprehensive management of information such as properties, customers, agents, contracts necessary for real estate business, and features the systematization of practical know-how accumulated by the company in areas such as attracting customers, sales support, property-customer matching system, customer follow-up support, and the latest real estate information distribution email service. It supports business efficiency, time reduction, cost savings, and productivity improvement for small and medium-sized enterprises, and as of April 2024, it has been certified as a service eligible for the IT introduction subsidy 2024 by the Ministry of Economy, Trade and Industry. This is the 7th time the company has been selected as an IT introduction support provider.

When introducing the designated IT tools of certified IT introduction support providers, a subsidy of less than half of the system's implementation cost (up to less than 1.5 million yen) is provided.

In August 2020, the company established the "Digital Transformation (DX) Promotion Headquarters." It promotes the provision of services that combine real estate, finance, and IT to provide customers with peace of mind and convenience by breaking away from traditional face-to-face interactions and paper-based transactions in the real estate industry. This initiative was driven by the increased momentum towards promoting DX in society as a result of the COVID-19 pandemic. Specifically, advancements have been made in online business negotiations, telework such as telecommuting, the introduction of web conference systems, and the expansion of online real estate services such as online viewings, unmanned open houses, and VR tours.

In April 2021, the company began selling the "Smart DO Home" equipped with IoT devices. In addition to home appliances, customers can operate functions such as opening and closing the front door and heating water through a dedicated smartphone app or voice control. Customers can acquire a new lifestyle by automatically linking home appliances and facilities.

Transition to a holding company structure

The company group consists of the company, five consolidated subsidiaries, and one affiliate. In January 2022, with the aim of strengthening group governance, optimizing resource allocation, fostering management talent for the next generation, and promoting the establishment of a flexible organizational structure, the company transitioned to a holding company structure through a company split method, changing its name from "House Do Co., Ltd." to "And Do Holdings Co., Ltd.". The company aims to handle various real estate properties in addition to residences, which is why it removed "house" from its name. While maintaining the house leaseback business, the franchise business was succeeded by House Do Housing Sales Co., Ltd., the real estate sales and brokerage business and renovation business were succeeded by House Do Japan Co., Ltd. Koyama Real Estate Co., Ltd. was dissolved as an absorbent company and divided to House Do Housing Sales Co., Ltd. The remaining businesses continue as Financial Do Co., Ltd. for financial business, House Do Sales Management Co., Ltd. for property management business, and Keiyo Build Co., Ltd. for real estate rental business. Koyama Construction Co., Ltd. was absorbed and merged into its own company as of January 2023, and Koyama Do Japan Co., Ltd. was absorbed and merged as a remaining company. In July 2024, the company changed the commercial name of its consolidated subsidiary, PM Do Co., Ltd., to House Do Sales Management Co., Ltd.

In February 2019, the company established its first overseas subsidiary in Thailand, laying the foundation for business expansion in Asia. In the joint venture company H-DO (THAILAND) Limited, they mainly engage in the renovation business of used residences leveraging the expertise in real estate distribution cultivated in Japan. While developments by Japanese companies in housing and office buildings are thriving in Thailand, there are no Japanese companies entering the second-hand real estate distribution market, making it an unexplored blue ocean that the company's subsidiary can aim to dominate. They opened the first franchise store called 'Housedo' in March 2023, and by the end of June 2024, they have expanded to 5 stores. The business is currently progressing smoothly, with over 300 consultations received monthly regarding the purchase of second-hand real estate. The company plans to expand the franchisee network in Thailand to 500 stores within 10 years and aims to further expand its business in the Asian region after establishing the Thai operations. It's worth noting that H-DO (THAILAND) Limited's shares are held by Mastercool International Co., Ltd. listed in the Kingdom of Thailand at 49.0%, the company itself at 49.0%, and a company supporting the company's overseas operations at 2.0%, making it an equity method affiliate.

(Written by FISCO Guest Analyst Yoichiro Shimizu)