JAPAN RELIANCE SERVICE CORPORATION

Business Details

Provides a one-stop offering of security guard services, cleaning services, office services, and facility management & construction services to office buildings, commercial facilities, hotels, and hospitals operated by public agencies and private companies. Key subsidiaries participating in this segment include RSC Chubu, Yuwa Shoko, Clean Force, and RSC Security. Revenue is composed of two contract types—annual contracts and temporary contracts—with major customers including Sunshine City Corporation (approximately 16.3% of segment revenue).

Recent Overview

Core business achieved increased revenue and profit, but total company revenue declined 6.9% year-on-year due to a sharp decrease in the Human Resources Service Business

In FY2026 (ending March 2026), revenue in the Comprehensive Building Management Service Business grew steadily to ¥7,569 million (up 10.0% year-on-year), with segment profit of ¥669 million (up 6.8% year-on-year). The segment successfully completed large-scale temporary projects including security for the Osaka-Kansai Expo and event security in the Marunouchi area. The company established subsidiary RSC Security, specializing in Category 2 security guard services, and also began joint deployment of AI security solutions through a capital and business alliance with SoftBank Robotics. Profitability improved through optimized staffing allocation at existing business sites and revisions to contract pricing.

Key Products

Growth Drivers

• Expansion of demand for security and cleaning services accompanying urban redevelopment and an increase in large-scale events (such as the Asian Games)
• Joint deployment of next-generation AI- and robotics-based security solutions through the capital and business alliance with SoftBank Robotics
• Strengthened capability in the Category 2 security guard services domain (traffic control and crowd control) and new order acquisition through the establishment of RSC Security
• Improved profitability through the promotion of contract price revisions (price pass-through) at existing business sites
• Strengthened stable revenue base through expansion of patrol cleaning operations into the greater Tokyo area and regional locations
• Expanded service supply capacity through the consolidation of Clean Force Co., Ltd.
• Improved productivity through AI and robotics investment and back-office digitalization based on the medium-term management plan "RSC Challenge 2030"

Risks

• Chronic labor shortages and rising recruitment costs due to the declining birthrate, aging population, and widespread wage increases
• Risk of profit margin pressure from delays in passing through rising labor costs to prices
• Revenue concentration risk with major customer Sunshine City Corporation (approximately 17.8% of segment revenue)
• Risk of fluctuation in construction demand at group subsidiaries (such as Yuwa Shoko)
• Risk of increased costs in the construction and facility departments due to rising prices of building materials and other raw materials
• Increased initial investment burden and technology response costs associated with the introduction of new technologies such as AI and robotics (operating profit is expected to decline significantly in FY2027, ending March 2027, due to growth investments)