Detailed Description of Portfolio Companies of Fund IV

HITOWA Holdings Co., Ltd.

Features Since its establishment in 1997, the company have developed its 3 main businesses; 1) Franchising business of various services including “Oso-ji Hompo” to deliver housecleaning service and “KEiROW” to provide visiting rehabilitation massage care, 2) Nursing care service business to operate nursing homes of the elderly named “Irise”, and 3) Child care support service business to operate licensed kindergartens named “Taiyo no ko”. Additionally, it also operates 1) Human resource services business focusing on staffing in nursing and child care fields, and 2) Food service business to cater to elderly homes, kindergartens and corporate cafeterias, etc. across Japan, as complementary to the main businesses.
Investment Pattern Business Succession
Secondary Buyout
Investment Theme Polaris intends to achieve HITOWA’s continued growth and reinforce its strength by acquiring more franchisees of FC business, the biggest growth driver, increasing per-FC sales through improving repeating customer ratio via proactive marketing and developing new peripheral businesses as well as a new pricing strategy in nursing care segment where market growth is expected, in a collaboration with Polaris’s existing investment companies where possible. In preparation for initial public offering, Polaris also plans to strengthen HITOWA’s corporate governance through dispatching of directors and officers.