The business strategy and business results, etc. of the Group may be influenced by a change in demographic and population structure, change in disease structure, innovation in medical technology, trends of various regulations by the government, etc.
To address these potential impacts, the Group actively engages in various industry associations and regional organizations, utilizes diverse statistical data, and maintains open communication with business partners. This approach helps us accurately grasp necessary information and adapt our management practices in response to these changes.

Our group maintains strong relationships with medical institutions and partner companies, while actively gathering information on relocations, new constructions, expansions, renovations, and consolidations. Additionally, the company are focused on securing and training dedicated personnel necessary for large-scale projects.

Our group is working to improve the efficiency of our management system through measures such as establishing new logistics centers and consolidating functions within the group to manage price reductions and the appropriate handling of medical supplies.

Our group is committed to ensuring the safety and health management of facility residents while securing personnel for nursing and food services. Additionally, The company is dedicated to training staff to differentiate ourselves from other facilities.

Our group is focused on securing pharmacists to ensure safe and reliable dispensing services, along with providing education for safety. The company also actively gather information on potential relocations and changes involving medical institutions.

Our group views M&A as a key strategy for business expansion, which may require significant capital in the future. There is some uncertainty as to whether acquisitions will achieve the desired business expansion or contribute positively to earnings, and in some cases, they may have a negative impact.

Before conducting an M&A, the Company performs due diligence to identify potential risks and negotiate acquisition prices. The board of directors engages in thorough discussions. After acquisition, the Company strengthen collaboration with the group, implement performance management, and work towards achieving planned goals.

Our business plans include capital requirements for M&A and funding for the Life Care segment’s nursing care sector, which could lead to increased interest-bearing debt. There is no guarantee that our funding conditions will remain favorable, potentially posing limitations on our business.
As of the end of this fiscal year, interest-bearing debt stood at 59.91 billion yen.

Our group operates businesses in countries such as Bangladesh and Myanmar, exposing us to country risks arising from unexpected situations due to political, economic, and social conditions, as well as changes in local laws. Such risks could lead to restricted business activities, delayed or uncollectible receivables, and potentially impact on our group's operating performance, financial position, and cash flows.

Our group holds foreign currency-denominated assets and liabilities related to overseas businesses and may conduct foreign currency transactions with overseas partners both domestically and internationally. The financial statements of overseas subsidiaries are prepared in local currency, then converted to yen for consolidated reporting.
As a result, fluctuations in foreign exchange rates may affect our group's operating performance and financial position, even if there are no changes in performance in local currency terms.

In the event of a large-scale natural disaster, such as an earthquake, fire, or an outbreak of infectious disease like COVID-19, our group's service offerings may be severely impacted.