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Tokyo, March 8, 2007 - CSK HOLDINGS CORPORATION ("CSK") and Xavel, Inc. ("Xavel") announced today that they have agreed to start joint e-commerce service platform business, which will provide e-commerce systems and fulfillment services (back office business processes ranging from processing of product orders to delivery) to companies aiming to succeed in e-commerce business.
CSK plans to acquire a 65% share in Solo, Inc., a wholly owned subsidiary of Xavel, in mid-March, change the company's name to CSK PRESCENDO CORPORATION ("CSK Prescendo"), and start business from April.
CSK Prescendo will provide systems and a suite of services bringing together the e-commerce experience and expertise accumulated by the Xavel group through sites such as girlswalker.com, one of Japan's largest mobile portal sites for women, and Tokyo girls collection (TGC), one of the biggest fashion festas ever organized, to companies aiming to succeed in e-commerce.
1. Objectives and details of joint venture
CSK Group has to date been broadly involved in the e-commerce business of Xavel, and will bring together the e-commerce expertise it has accumulated in the past in CSK Prescendo. Xavel Group will outsource its future e-commerce related fulfillment business processes to CSK Prescendo. CSK Group company ServiceWare Corporation has already been mandated to take care of customer service for Xavel Group since 2005, but from now a range of fulfillment services necessary for e-commerce, including systems development as well as logistics and settlement business processes, will be collectively outsourced to CSK Prescendo. Through this Xavel Group aims to create robust security systems and develop efficient and highly reliable e-commerce systems.
CSK Prescendo will also serve as the developer of e-commerce systems, formally provided by Xavel. The joint venture will pursue completely new solutions business combining their particular capabilities, including CSK Group's proficiency in systems development, systems management and BPO services and Xavel's strengths including media planning, STP (Segmentation/Targeting/Positioning) related consulting, and so forth. This new proposal is already attracting significant attention, and an apparel company has already decided to align its e-commerce business with CSK Prescendo, scheduled to begin in August.
By providing a suite of e-commerce business services through CSK Prescendo, CSK Group aims to accumulate experience and expertise and make this available also to other customers. By completely outsourcing e-commerce systems and fulfillment business processes to CSK Prescendo, Xavel expects its business processes to become more efficient and quality to improve, while enabling it to focus on core businesses and focus its resources on enhancing its portal sites, carrying out events, pursuing its branding support business and others.
CSK Group and Xavel will contribute to expanding the business of CSK Prescendo, and the three parties—CSK Group, Xavel and CSK Prescendo—will contribute to developing the e-commerce market.
2. Outline of joint venture company (planned)
Partial changes are planned to be made at the shareholders' meeting of Solo, Inc. scheduled to be held in mid-March. The new details will be as listed below.
| (1) | Official name: | CSK PRESCENDO CORPORATION |
| (2) | Established: | October 20, 2005 |
| (3) | Address: | 2-26-1 Minami-Aoyama, Minato-ku, Tokyo |
| (4) | Paid-in capital: | ¥275 million |
| (5) | Shareholders: | |
| | CSK HOLDINGS CORPORATION | 65% |
| | Xavel, Inc. | 35% |
| (6) | Directors: | | |
| | President and CEO: | Shozo Hirose | (President, CSK SYSTEMS CORPORATION) |
| | Director: | Fumitaro Ohama | (President and CEO, Xavel, Inc.) |
| | Director: | Mineo Yokoyama | (Manager, CSK SYSTEMS CORPORATION) |
| | Director: | Yoshiyuki Terada | (Executive Officer, ServiceWare Corporation) |
| | Director: | Takahiro Suzuki | (Director, CSK HOLDINGS CORPORATION) |
| | Director: | Ryuichi Sato | (President and CEO, Solo, Inc.) |
| | Auditor: | Toshinao Akiyama | (Manager, Accounting Section-1, Accounting Division, CSK HOLDINGS CORPORATION) |
3. Impact on business results
The impact exerted on CSK's financial results by the said joint venture will be immaterial.
CSK HOLDINGS CORPORATION
| Established: | October 1968 |
| Paid-in capital: | ¥72.19528 billion |
| Representative: | Yoshito Fukuyama, President and Chief Executive Officer |
| Address: | CSK Aoyama Building, 2-26-1 Minami-Aoyama, Minato-ku, Tokyo |
| URL: | http://www.csk.com/ |
| About CSK Group: |
| CSK Group aims to use its IT strengths to become a service provider that contributes to parties ranging from individual customers to society as a whole and create new services that support the development of industry and society, by combining its expertise in IT services and BPO business that it has provided to large numbers of customers to date and its capability in applying IT expertise in various business processes. |
Xavel, Inc.
| Established: | November 1999 |
| Paid-in capital: | ¥111 million |
| Representative: | Fumitaro Ohama, President and CEO |
| Address: | WAVE NISHI AZABU, 1-14-17 Nishi-Azabu, Minato-ku, Tokyo |
| URL: | http://www.xavel.com/ |
| About Xavel: |
| Forming the centerpiece of Xavel's business is girlswalker.com, a mobile portal site with around seven million female users. The company's portfolio also contains other sites that are hugely popular with women, including girlsshopping, one of Japan's largest mobile commerce sites, and fashionwalker.com, the rapidly developing PC website. On March 3 the company held Tokyo girls collection (TGC), an e-commerce related fashion festa, at Yokohama Arena. The festa was hugely popular, with more than 20,000 people attending. On March 26 the company plans to hold the same fashion show in Beijing. In future the company aims to pursue multi-faceted business as a leader of fashion and beauty offerings that appeal to the sensibilities of women, by leveraging a media mix strategy combining mobile internet, the general internet and real-world events. |
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