[Suma Support <9342>] Famous investor DAIBOUCHOU asks President Oda questions! Continuation of Vol.1.

●DAIBOUCHOU

I see. Thank you. I believe there are ways to purchase such products from other companies, but what sales efforts are made to ensure contracts are signed through your company rather than others? Are there any discounts or strengths in your offerings?

■Oda

We also hold discount campaigns, but the most significant time for us to contact clients is when the contract is concluded, and this is very important. I believe it is crucial that our company becomes the first point of contact for new tenants.

●DAIBOUCHOU

Is it around the time just after they move in that you make a call?

■Oda

It is right after the room has been decided.

●DAIBOUCHOU

Is it right after it has been decided? It means you will move in from now.

■Oda

That's right. In order to inform you about what kind of internet can be used in the room you will be moving into, and what kind of discounts there are for electricity, gas, etc., I believe our strength lies in being able to contact you earlier than the large electronics stores that provide the purchase and service.

●DAIBOUCHOU

It is better to do it before moving in. It is true that electricity prices have been rising at places being considered recently, so it is better if they can be reduced.

●DAIBOUCHOU

That's right. First, it's important to know the address of the place you will be moving to. Since we can identify the condominium from here, we believe it is a strength to be able to consult regarding the area's characteristics, etc.

●DAIBOUCHOU

There is also the tenant application "totono," and it seems that contracts can be made through it, not just over the phone.

■Oda

That's right. Basically, the idea is to maintain solid communication through phone surveys and thanks, while also providing support through the app. However, since there are some things that cannot be fully sold over the phone, we will coordinate this with "totono." Initially, information will be conveyed over the phone, and applications will be linked through the app.

●DAIBOUCHOU

I see. Understood. Thank you. For individuals who do not communicate much with the management company, their usage frequency of the app may be low, leading to its diminished presence and potential neglect of management contact, so are there any strategies to encourage such individuals to utilize the tenant app?

■Oda

Basically, those who are renting do not communicate with the property service on a daily basis. If there is communication, it usually comes from the tenant. For example, if the neighbor is noisy, there is a water leak, or a light bulb in the elevator is out, such issues are reported to the property service, which then reacts accordingly. In other words, if there is no communication from the tenant, the property service has no way to actively reach out to the tenant.

●DAIBOUCHOU

I see.

■Oda

When communicating something, it was only possible to go and post a notice on the bulletin board of the apartment or condominium using an A4 sheet of paper. Then, after a certain period, it would need to be removed, which required time and labor to communicate with the tenants. However, by using our "totono," the property service can now provide various information directly and in real-time to the tenants. The property services that have actually implemented this can actively provide information that tenants need for their daily lives, such as local information, details about the nearby shopping district, waste disposal methods, non-combustible waste information, and notices about volatility costs—information that was not previously conveyed. In other words, the focus shifts from reaction to action.

●DAIBOUCHOU

Now that the property service can engage with tenants, it not only allows for the expansion of services that were previously impossible but also reduces effort, which is beneficial for the property service.

■Oda

That's right. For example, this summer, a large typhoon came and caused significant damage. However, the property service companies using our "totono" provided typhoon information and communicated to "please evacuate if it is dangerous." Since there hasn't been a direct means of confirming safety before, I think this will become very important in the future.

●DAIBOUCHOU

Understood. Thank you. Next, compared to phone calls, the app has a waiting sales model, and simply listing products on the app gives the impression that they won't sell. Are there any strategies to effectively sell products?

■Oda

The main purpose of the app is communication between tenants and property service companies. It is recognized that we are not currently in a phase of actively selling specific products. For example, right now, after tenants move in, many times necessary items are ordered to be delivered by our company. This includes reviewing insurance or having free internet installed in apartments, like free internet.

●DAIBOUCHOU

Contracting for all units at once (free internet?).

■Oda

Yes. However, when trying to actually use it after moving in, tenants' usage of the internet has become diverse, such as playing online games.

●DAIBOUCHOU

There is a desire for more speed.

■Oda

That's right. When wanting to watch a movie on Netflix, there are often cases where the speed slows down in the evening and at night, which is why many tenants prefer to review their internet contract through an app.

●DAIBOUCHOU

I see. That means efforts are being made in that direction. This is the sixth question. I think it is a business model that collects various data about tenants, but what kind of new businesses might emerge from utilizing that data? As an investor, I also hope for applications in generative AI, etc.

■Oda

That is exactly where our strength lies, and I believe it is a point we will strengthen going forward. Until now, communication between property management companies and tenants was conducted via phone, mail, and fax. Therefore, there is currently no accumulation of this data.

However, by transforming into "totono" from now on, we will be able to collect data on inquiries or complaints, and issues from any area, any apartment, and any room. For example, we will accumulate data on the air conditioner in this room, down to "the model year and which manufacturer’s air conditioner it is," allowing us to respond via chat with this information. As more and more data accumulates, we expect that AI will enable automatic replies, self-resolution, and dramatically evolve the communication between real estate companies and tenants.

●DAIBOUCHOU

If AI could indeed create chat responses automatically, I think it would significantly reduce the workload of property management companies. Is it the direction for "totono" to solve various issues through digital transformation? Furthermore, it would be immensely helpful if manuals for air conditioning units and other equipment could be digitized, allowing for operational guidance. Regarding the tenant app "totono," I believe you are making a forward investment, but what specific forward investments are being conducted?

■Oda

Broadly speaking, there are three aspects. First, we want to improve the app's UI and UX that tenants have, making it necessary for a more comfortable and convenient living experience.

The second aspect is the development of the management screen used by property management companies. For example, when a chat from a tenant reporting a night-time water leak is sent to "totono," we can seamlessly connect to an external vendor that handles night-time water leaks. This is currently under solid development. There are contractors that deal with water leaks in tenants' rooms, as well as those responsible for elevators in shared areas. Moreover, we need to coordinate with various external vendors, such as parking lots and construction companies, so we are developing in cooperation with each vendor.

The third aspect is how to reduce costs through AI integration. Our investments are focused on developing data organization and AI integration.

●DAIBOUCHOU

When there is a report from tenants about leaks or broken toilets, the idea is to create a system in this app that allows for smooth connections with construction companies to respond immediately.

■Oda

Currently, it is partially in place, and truly seamless responses are provided by the contractors. There is no need to check the situation on-site and return for materials as long as video, photos, and model numbers are sent; this also eliminates the need for the time-consuming task of going back to confirm.

●DAIBOUCHOU

Indeed, issues related to water are often quite urgent, and knowing the model number of the toilet allows for preparing repair tools in advance, enabling quick fixes. Understood. Thank you.

[Smart Support] Renowned investor DAIBOUCHOU poses questions to President Oda! Continued in Vol.3.