MRT Inc.

The Group operates its business under the "Fee-Charging Employment Placement Business License" based on the Employment Security Act and the "General Worker Dispatching Business License" based on the Worker Dispatching Act, and business activities may be restricted if grounds for license revocation arise. In addition, amendments to a wide range of laws and regulations, including medical advertising guidelines and the Telecommunications Business Act, may affect the business. The Group strives to ensure legal compliance by formulating regulations, providing internal training, and strengthening pre-publication check systems.

The Group holds a large volume of personal information on physicians, nurses, and other medical professionals, and if leakage, tampering, or unauthorized use occurs, it could significantly impact the business through claims for damages from customers or loss of trust. As countermeasures, the Group has obtained Privacy Mark certification (2012), migrated to an ISO27001-compliant data center (2013), obtained ISMS certification (2016), fully preserved access logs, and thoroughly conducted employee training.

The staffing and recruitment industry has low barriers to entry for new participants, with numerous competitors ranging from major companies to sole proprietors, and there is a possibility of declining referral fees and industry consolidation. In the online medical consultation system market as well, numerous providers exist, and competition is intensifying. The Group addresses this through member acquisition based on word-of-mouth and referrals among physicians and service differentiation leveraging its physician network, but if its competitive advantage declines, business performance may be affected.

The Group is promoting capital and business alliances, including an investment in DOCQUITY HOLDINGS PTE.LTD. (Singapore), and the revenue and expenditure related to expansion into Southeast Asia account for a high proportion of the medium- to long-term plan. If expected synergies are not achieved due to deterioration in the alliance partner's business performance or changes in the business environment, impairment losses on goodwill or losses on investment may be recognized. It is recognized that the impact on business results would be particularly significant if the business were forced to be suspended.

The Group is promoting service expansion mainly in ASEAN and other Southeast Asian regions, but if legal regulations, political instability, currency crises, natural disasters, epidemics, etc. occur in the countries of expansion, it may become difficult to maintain service quality and ensure stable supply. Difficulties in securing personnel due to differences in local culture, religion, and customs, as well as unexpected wage increases or labor disputes, may also affect business expansion. Although the Group optimizes services to suit each country and region, the risk of needing to respond to unexpected regulatory changes remains.

In the overseas human resources consulting service, approximately 100.0% of revenue is denominated in foreign currency, resulting in a relatively high impact on business performance when exchange rates deviate from expectations. The yen-converted amounts of assets, liabilities, and profit and loss of overseas subsidiaries are also affected by exchange rates, which may cause fluctuations in consolidated asset and liability balances and comprehensive income. In addition, the yen-converted amounts of investment amounts in and recovery amounts from overseas companies may fluctuate, and exchange rate impacts on the performance of investee companies may also affect impairment assessments.

The medical institution job listing site, specialized site for medical professionals, emergency safety confirmation, online medical consultation, and health consultation services, among others, depend on web systems and communication networks, and if system trouble occurs due to natural disasters, unforeseen accidents, sudden surges in access, etc., business continuity may be affected. The Group strives to prevent this through building its own system management structure, regular backups, and monitoring of operational status, but complete avoidance is difficult.

As part of its medical institution management support services, the Group temporarily advances funds related to payroll calculation and transfer for part-time medical professionals, and if bad debt losses occur due to credit concerns at medical institutions, business performance may be affected. In addition, in the medical fee receivable factoring service, if the reduction in receivables resulting from review by the Social Insurance Medical Fee Payment Fund and others exceeds expectations, the business may also be affected. The Group works to reduce risk through managing the management conditions of medical institutions in coordination with the medical staffing services division and conducting strict screening based on past payment records.

As advance investment for new services such as the physician network utilization app "Door." and the online medical and health consultation service "Door.into Health and Medical Consultation," additional expenditures such as system investment and personnel costs may occur. If new businesses do not progress as planned, or if sufficient revenue is not expected and the initial investment cannot be recovered, impairment losses on fixed assets may occur, affecting business performance.

The medical information sites operated by the Group are highly dependent on customer acquisition via search engines, and if display results change unfavorably due to changes in logic or guidelines by search engine operators, the effectiveness of attracting visitors to the sites may decline, potentially affecting the business and business performance. Although the Group takes necessary measures such as SEO countermeasures and compliance with advertising guidelines, it cannot fully control changes made by search engine operators.