(286A) Yukaria - New Analyst Report 12/13

The Yukaria Group consists of Yukaria, 10 consolidated subsidiaries, 5 unconsolidated subsidiaries, and 5 equity-method non-applicable affiliated companies, and is engaged in Health Care related business.

In terms of business segments, the company focuses on Medical Management Comprehensive Support Business, which supports hospitals in financial distress, Senior Care Business that provides consultation and facility introduction for nursing homes and operates nursing homes, and Advanced Medical Devices Business that manufactures and sells contact lenses.

The revenue composition ratio for the 23/12 term was 29.9% for the Medical Management Comprehensive Support Business, 36.9% for the Senior Care Business, 33.0% for the Advanced Medical Devices Business, and 0.2% for others.

In the Medical Management Comprehensive Support Business, partnerships are formed with hospitals in financial distress to provide support services. Specific support services include management consulting for revitalizing hospitals as needed in the region, funding support such as sale and leaseback of hospital-owned real estate and factoring of medical fee receivables, promotion of hospital operation digitalization, procurement support for medical supplies and medical devices, and personnel support such as recruitment, provided on average for around 10 years.

As of September 24, in partnership contracts with medical corporations (hereinafter referred to as affiliate medical corporations), there were 24 corporations, and the number of hospitals receiving management support was 24 hospitals. The majority of the supported hospitals have around 100-499 beds.

The Senior Care Business consists of Ai Life, a subsidiary responsible for consultation and facility introduction services for nursing homes, and Clarch, a subsidiary responsible for operating elderly care facilities.

In the consultation and facility introduction services for nursing homes, two services are provided: face-to-face services conducted by consultants mainly in the Tokyo metropolitan area, and the portal site 'Sagacious' where facilities can be searched online for information requests, among which Yukaria also includes facilities it operates, introducing over 9,000 facilities nationwide. Revenue comes from success fees received from nursing homes upon occupancy decisions. 'Sagacious' revenue is from success fees and advertising income from nursing homes.

The Advanced Medical Devices Business is carried out by the subsidiary Cynthia (7782 TSE Standard), which manufactures and sells contact lenses. The main brand 'Cynthia S Series' prevents lack of oxygen to the eyes even with long-term use, using silicone hydrogel material clear lenses with minimal eye strain, handling multiple brands in addition to others.