February 26, 2002
Notice of Establishment of ISID Horizon
Inc.
Establishment of Management Staff Specialist
Company for the Purpose of Enhancing the Group's Management Base
Information Services International-Dentsu, Ltd. (ISID, head office: Nakano-ku, Tokyo, Representative: Jutaro Takinami, President & CEO) has decided to establish ISID Horizon Inc. as a wholly-owned subsidiary during a Board of Directors' meeting held on February 26, 2002. Functions of administrative staff divisions and personnel will be transferred to the new company. Plans call for the transfer of general affairs, personnel, accounting, facilities and asset management, purchasing, information systems, sales support, and all other back-office operational divisions. This move will leave ISID corporate headquarters' staff division responsible only for strategic planning, corporate communications, and legal functions.
1. Objectives of Establishing the Company
•Consolidation and enhancement of the administrative staff functions of
group companies
•Reduction of administrative indirect costs of the entire group through
consolidation of administrative staff functions
•Greater efficiency of management control through building and sharing
of an information system which will be the infrastructure for improving
group management
•Improvement of the cost consciousness of administrative staff and stimulation
of desires to develop abilities through establishment of an independent
company
ISID Horizon Inc. will be responsible for development, operation, and maintenance
of information systems within the group and all administrative staff operations
as the sole back-office specialty company of the ISID Group. It is positioned
in the group as a pool company for administrative staff personnel, and upgrading
of management control in group companies will be supported by supplying
personnel to group companies as necessary. Unlike company spin-offs by function
generally used as a method for management restructuring, the systems division
and all administrative divisions will be integrated, and the goal is improvement
of the management efficiency of the entire ISID Group through total cost
control.
For the present, ISID Horizon will be charged with full outsourcing of operations
from ISID and wholly-owned subsidiaries of ISID, and it will also provide
individual services to other subsidiaries with more than 50% equity share.
Thus, ISID is positioning the establishment of ISID Horizon as a link in
the building and upgrading of the group management structure.
2. Overview of the New Company
(1) Company name: ISID Horizon Inc.
(2) Representative: Tatsuo Otake, President (Senior Executive Director
of ISID)
(3) Location: 4-11-10 Nakano, Nakano-ku, Tokyo
(4) Establishment date: April 1, 2002 (Planned)
(5) Main businesses: Delivery of services for back-office operations
(6) Closing date: March 31
(7) Number of employees: Approx. 130 (all transferred from ISID)
(8) Principal offices: Tokyo, Nagoya, Osaka
(9) Paid-in capital: ¥300 million (Planned)
(10)Shareholder structure and ownership percentages:
Information Services International-Dentsu, Ltd. 100%
(11) Performance trends:
FY2002 (April 1, 2002 through March 31, 2003)
Sales forecast Approx. ¥2.0 billion
