LONDON – 14 February 2019 – HomeServe plc (“HomeServe”), the international home repairs and
improvements business, has signed an agreement with Mitsubishi Corporation (“MC”) to establish a
joint venture (“JV”) in Japan.

To be called HomeServe Japan Corporation, the joint venture will be 50:50 owned by HomeServe
and Mitsubishi Corporation. HomeServe Japan Corporation will build a business to provide home
emergency and repair services in electrics, plumbing, gas, heating, ventilation and air conditioning.
The business will be based on a membership model and will also offer on-demand services to
residential customers.

Japan is the world’s third largest economy with 53 million residential households. Recent
liberalisation of the gas and electricity markets, together with access to the water market for
private concessions, has created a positive environment for HomeServe’s utility branded home
assistance model.

The move is part of HomeServe’s global partnership approach to provide successful strategies for
utility companies to improve their connection with customers and strengthen and lengthen their
relationships.

Utility companies are facing unprecedented challenges. Regulatory change, new innovative players,
higher consumer expectations and rapidly evolving technology are putting pressure on revenue and
encouraging customer churn.

According to Stephen Phillips, HomeServe’s Global CEO of International Business Development:
“Utilities need to move beyond providing basic services and re-evaluate their business models to
embrace the opportunities which are opening up in this new landscape. Customers have become
used to effortless online experiences in areas such as retailing and smart tech, and now want the
same convenience from their utility providers.

“Customers want providers to help them monitor, manage and maintain their homes. By offering
their customers targeted, value added products that can be integrated into larger smart home
systems, utilities have the opportunity to become more relevant in their customers’ lives.”

Home services propositions and technologies can support a utility’s positioning as a one stop shop
for home and energy management solutions. Research shows that customers view their utility as
the logical provider of such services, and that such offerings have a positive impact on customer
relationships.

In HomeServe USA’s white paper, ‘Natural Gas Utilities: Securing the Future, June 2017’, analysis
of utility customers who bought a home assistance plan showed an increase in customer satisfaction
of more than 60% amongst electricity customers after enrolling. Enrolled gas customers were more
than 75% happier with their provider than those who were not signed up.

The paper also links customer satisfaction to a better return on equity (ROE) and increased
profitability. On average top quartile utilities earned 10.7% ROE, whereas bottom quartile utilities
earned 10.1%. Similarly, electric utilities in the top quartile of customer satisfaction typically
report profits 3-4% higher than utilities in the three lower quartiles.

Other research (Eneco btg.org 2015 and Centrica Capital Markets Day 2017) shows 60% less churn
when customers have committed to additional products such as smart home offerings and that
customers in the highest value segment have a high propensity to hold multiple products and are
20% less likely to switch to another provider.

Stephen Phillips comments: “Partnering is an effective way for energy providers to keep up with
the frenetic pace of change, to transform their customer facing services and to extend their reach
into customers’ homes. But utilities need to pick their partners carefully. Thanks to our extensive
experience, HomeServe understands the key elements of successful partnerships. Most important
are alignment of culture, sharing the same values, and common vision and goals. HomeServe works
with over 600 utility partners who understand and can deliver customer centric offerings, valuable
benefits, ease of access, exceptional levels of service at the points of interaction and effective
communications.”

 

About HomeServe

HomeServe is an international home repairs and improvements business which provides people with
access to tradespeople and technology to run their homes more easily. HomeServe is listed on the
London Stock Exchange, with a market capitalisation of c. £3.2 billion. More information about
HomeServe’s international partnership strategy can be found at www.homeserveglobal.com.

About Mitsubishi Corporation

Mitsubishi Corporation is a global integrated business enterprise that develops and operates
businesses across virtually every industry, including industrial finance, energy, metals, machinery,
chemicals and daily living essentials, having wide-ranging relationships with public and private
utilities in Japan.

 

Enquiries

HomeServe

Miriam McKay
miriam.mckay@homeserve.com
+44 7795 062564

Simon Lewis
Simon.lewis@homeserve.com
+44 7970 840694

 

Tulchan Group

Martin Robinson
Lisa Jarrett-Kerr
homeserve@tulchangroup.com
+44 207 353 4200

 

ENDS

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