New Analyst Report 6/14 ①

The D&M Company Group consists of D&M Company and 2 subsidiaries, and provides management support services such as ① financial support services through purchase of clinical/nursing care remuneration claims, ② consulting and M&A support for management improvement, ③ leasing and sales of medical devices, etc., and ④ temporary staffing and business outsourcing services.

The D&M Company business is a single segment of management support business for medical institutions, etc., and sales are classified into 3 categories: ① F&I (finance & investment), ② C&Br (consulting & business renovation), and ③ HR&OS (human resources & outsourcing).

The sales composition ratio for the 23/5 fiscal year was 48.8% for F&I services, 28.2% for C&Br services, and 23.0% for HR & OS services. By customer, medical institutions accounted for about 70%, and nursing care providers, etc. accounted for about 30%.

As for F&I services, D&M Company provides purchase services for medical treatment and nursing care compensation claims, and the subsidiary D&M Partners provides leasing of medical devices.

In the purchase of medical/nursing care compensation claims, medical institutions/nursing care facilities, etc. sign an agreement to transfer medical/nursing care remuneration claims held to insurers of national health insurance, social insurance, long-term care insurance, etc. to the company over a long period of about 5 years, and the provision of medical/nursing care services has been completed, and future claims that are expected to occur in the future due to business continuity.

In D&M companies, there is room for management improvement, and medical institutions, etc. necessary for the region are subject to debt purchases. Thus, management of medical institutions, etc. is supported, and credit risk of D&M companies is reduced.

The number of debt purchase companies at the end of February '24 was 64, and the balance of purchase receivables was 7,016 million yen. Funds are raised mainly through bank loans, and the balance of loans is 6,955 million yen, of which the balance of short-term loans is 6,054 million yen.