■The growth strategy of D&M Company <189A>

The growth strategy consists of two phases. First, as a short-term measure in "Phase 1", the focus is on expanding the customer base by providing services centered around factoring. This customer base is positioned as the company's business platform, and cross-selling C&Br services and HR&OS services besides factoring aims to increase the customer unit price. By increasing both the number of customers and the customer unit price, the strategy seeks to expand the customer base for the future and enhance current revenues. In the subsequent medium to long-term measures of "Phase 2", the customer base established in Phase 1 will be utilized. Based on the trust established through trades, consulting services will be provided to customers to unearth new needs, thereby expanding the service menu and offering it as a solution, which further aims to increase the customer unit price.

To promote the growth strategy, two initiatives aimed at increasing the number of customers will be run in Phase 1. The first point is strengthening the financial structure. Currently, the company mainly finances its funds for factoring and loans through borrowing from financial institutions, but as the increase in purchased receivables progresses with the expansion of the customer base, it is necessary to enhance the funding. Although listing on the stock exchange has made it possible to raise funds from the market through capital increases, it is still early post-listing, so the company plans to continue borrowing main funds from financial institutions as before for the time being. To expand the lending limit, the company will aim to strengthen its financial structure through capital enhancement based on the listing. The second point is talent acquisition. For future business scale expansion and service content enhancement, there is a need for personnel well-versed in financial transactions and medical/elderly care practices, with rich consulting experience, so the company will promote hiring staff based on the increased visibility and credibility from the listing. Furthermore, utilizing the know-how developed thus far, the company is also considering hiring relatively younger employees and nurturing them to enhance specialized talent.

In Phase 2, to increase the customer unit price, the established customer base from Phase 1 will be utilized to delve deeper into the needs of existing customers, expand the service menu, and provide customized solutions by combining the optimal services for each customer. By responding to diverse customer needs, the realization of tailor-made services beyond existing services is also expected. Furthermore, if similar needs emerge in the market, it is believed that the company’s standard solutions can also be offered as service menus. By steadily building trust through attentive responses to customers, the company aims to increase the customer unit price and achieve growth in performance.

(Writer: FISCO analyst Tomoichi Murase)