■ Business Overview of D&M Company <189A>

1. F&I (Finance & Investment) Services

It consists of financial support based on the transfer of medical and nursing care compensation Bonds (factoring) and various real estate leases, provided by the company and D&M Partners.

(1) Financial Support Services Based on the Transfer of Medical and Nursing Care Compensation Bonds (Factoring)

Factoring is a financial service in which accounts receivable are transferred to a factoring company, allowing for early cashing before payment due dates. The medical compensation and nursing care compensation Bond factoring provided by the company enables early cashing of medical compensation Bonds that typically take 2 to 3 months to receive by transferring them to the company, thereby achieving financing tailored to various situations. The process involves monthly payments from national health insurance, social insurance, and nursing care insurance to the company, from which the amount for the relevant incurred Bond purchase is deducted. After deducting the amount, the profit from the company’s purchase fees and processing fees for future Bonds is subtracted, and the new purchase amount is added and paid to the operators. By cycling through these Bond purchase cycles, the company continuously provides the necessary funds to support operators. The targeted Bonds typically have a collection period of about 2 months, but when purchasing and cashing Bonds, the company focuses on supporting the recovery and growth of operators and offers factoring as a solution for business improvement. During the screening process, personnel from major financial institutions evaluate the necessity and sustainability of the business as regional infrastructure and the potential for business recovery. After fundraising, experienced medical consultants accompany and provide support. These are the strengths of the company.

(2) Lease of Various Real Estate

The company provides leasing services for medical equipment installation for operators. In utilizing leasing, the company proposes appropriate conditions (such as installation items and contract periods) as part of comprehensive management support based on consulting, aimed at reducing the initial capital burden of installation, leveling costs, and alleviating the administrative burden of fixed asset ownership.

2. C&Br (Consulting & Business Renovation) Services

Conduct management diagnostics and cost reduction consulting, mainly implementing consulting for businesses that purchase medical and nursing care revenue Bonds, aiming for management improvement. For businesses that find it considerably difficult to improve management due to scale and location, a hands-on management support equivalent to 'deep involvement in management' is provided in order to support business rehabilitation. Actively participate in cost reduction and various negotiations from the same perspective as the businesses and work towards performance improvement.

Specifically, in addition to participating as an observer in board meetings, actively check the performance situation and the progress of improvement measures, as well as being involved in the authority establishment for expense payments and price negotiations with trading partner companies. Depending on the difficulty of consulting, the company provides essential measures truly necessary for management improvement and offers funding, human resources, and information in a one-stop manner, striving for early management improvement in partnership with customers, demonstrating the ability to flexibly implement improvement measures. Note that individual services, such as only Bond purchases or only consulting, are also provided.

3. HR & OS (Human Resources & Outsourcing) Services

D & M Career develops its services mainly by introducing executives and managerial personnel to medical and nursing care businesses, dispatching administrative and helper personnel to medical and nursing care businesses, and accepting outsourcing from these businesses.

(1) Personnel Introduction

Conduct a paid job placement business based on the Employment Security Act. Actively recruit job seekers through the company's registered site, online advertising, and social media postings for executive, managerial, and administrative positions in the medical and nursing care industry, aiming for matching with job offering businesses. During the introduction process, consultants check the career plans and preferences of job seekers and hear from job offering businesses about the job profile and hiring conditions, aiming for the best matching. In particular, with respect to Buyers of medical and nursing care revenue Bonds, the company understands the potential human resource needs necessary for management improvement from its consultants and customer management teams, providing high-value human resources and thus contributing to credit stabilization in Bond collection from the perspective of supporting management rehabilitation. The company’s revenue is the introduction fee received from job offering businesses at the time of hiring decision.

For foreign personnel, support for living at the workplace also becomes necessary. D & M Career is registered as an organization that accepts living support and in many cases involving the introduction of foreign personnel, it is entrusted with living support services.

(2) Personnel Dispatch

Based on the "Law on Securing Proper Operation of Worker Dispatching Business and Protecting Dispatched Workers", a human resource dispatch business is conducted. Job seekers are widely recruited through a company-operated registration site, internet advertising, and SNS postings, and personnel suitable for the requests from businesses are selected from the registered job seekers. A worker dispatching contract is concluded with the requesting business, and a fixed-term employment contract is also concluded with the registered personnel to dispatch them to the requesting business.

(3) Outsourcing

Due to its high compatibility with the human resources business, outsourcing services in the areas of accounting and labor management are provided to support the efficiency of operations for medical institutions and care service providers, actively developing contracted services by utilizing registered staff.

(Writer: FISCO analyst Tomoichi Murase)