Expansion of the service lineup across the entire data health PDCA cycle

「The company will provide DeSC Healthcare Co., Ltd.'s healthcare entertainment app kencom as a municipal health promotion program, expanding its business from preventing the progression of lifestyle-related diseases among middle-aged adults to helping younger people establish healthy lifestyle habits, with the aim of rolling it out nationwide.」

「The company reviewed the expected future period of use of the kencom software held by a consolidated subsidiary, taking into account the expansion of the target market for health promotion programs resulting from the shift in the business model accompanying the development of new features to improve convenience for kencom users. As a result, because the software was expected to be usable for longer than its previous useful life, the company changed the useful life from 2 years to 5 years effective from the beginning of the interim consolidated accounting period.」

「As a synergy from making DeSC Healthcare Co., Ltd. a subsidiary, the company will provide new health promotion programs using applications, strengthen its delivery structure and work to contain cost increases.」

「For the healthcare entertainment app kencom, which had primarily been proposed to health insurance societies, the company is also promoting proposals to municipalities. In addition to Okayama City and Hirosaki City, where services began in the previous consolidated fiscal year, the company began providing the app during the current six-month consolidated period to many new municipalities, including Ehime Prefecture, Kagoshima Prefecture, Ichinomiya City, Takaishi City and Tsuyama City. Including these projects, it aims to generate further revenue growth in the current fiscal year and thereafter.」

「As a synergy from making DeSC Healthcare Co., Ltd. a subsidiary, the company will provide new health promotion programs using applications, strengthen its delivery structure and work to contain cost increases.」

「Orders and provision of support services for preparing third-phase Data Health Plans for municipal National Health Insurance insurers progressed smoothly, and the number of client insurers was expected to reach a record high.」

「Under these circumstances, our Group's net sales for the first quarter of the current fiscal year increased by ¥456 million from the same period of the previous year to ¥1,177 million, up 63.3% year on year. The smooth receipt and delivery of orders for support services for preparing the third Data Health Plan for municipal National Health Insurance led to a ¥246 million increase in net sales from the legacy Group, on the same basis of composition as in the same period of the previous year, while the consolidation of DeSC as a subsidiary contributed ¥209 million.」

「During the first quarter of the current consolidated cumulative period, there were no material changes in the business and financial issues that the Group should address as a priority.」

「From May 2022, the company will review the division of responsibilities within the group and strengthen staffing for remote guidance services to prevent the progression of diseases using tablet devices, thereby responding to an increase in the volume of guidance provided.」

「In terms of costs, we strengthened our service delivery structure with the aim of increasing net sales by 20%. We also invested in research and development for strengthening our sales and service delivery structures and for new businesses, including systems and data utilization businesses addressing the digital transformation of local governments, in preparation for expanding remote guidance to prevent the progression of severe illness in the fiscal year ending June 2023 and for the expected substantial increase in demand, centered on preparing the third Data Health Plan in the fiscal year ending June 2024.」

「During the cumulative second quarter, there were no material changes in the business or financial issues that the group should address as a priority.」

「In terms of profit and loss, operating income was ¥16 million (an operating loss of ¥233 million in the same period of the previous year) and ordinary income was ¥17 million (an ordinary loss of ¥233 million in the same period of the previous year), reflecting increases in personnel expenses in response to stronger sales capabilities and higher orders, as well as increased research and development investment for the development and improvement of new services.」

「However, as a result of promoting remote guidance to prevent the progression of diseases using tablet devices during the COVID-19 pandemic, the company achieved sufficient results. Going forward, it will expand the scope it can cover by increasing the number of group employees and promoting remote guidance.」

「During the cumulative third quarter, there were no material changes in the business or financial issues that the group should address as a priority.」

「During the cumulative second quarter, there were no material changes in the business or financial issues that the group should address as a priority.」

「During the first quarter of the current consolidated cumulative period, there were no material changes in the business and financial issues that the Group should address as a priority.」

「① Strengthening the service lineup」

「There have been no material changes in the issues to be addressed by the Group during the nine-month period ended December 31.」

「There have been no material changes in the issues to be addressed by the Group during the six-month period ended September 30.」

「Based on its proprietary technologies, including medical databases, claims data analysis and guidance to prevent the progression of diseases, the group consistently provides insurers with the Plan (formulation of a Data Health Plan), Do (implementation of health promotion programs), Check (verification of health promotion programs) and Act (improvement and planning for the following year) stages of the Data Health PDCA cycle. In addition, it has launched a multi-medication information notification service to address polypharmacy, contributing to the optimization of medical costs and improvements in QOL.」

「There have been no material changes in the issues to be addressed by the Group during the nine-month period ended December 31.」

「There have been no material changes in the issues to be addressed by the Group during the six-month period ended September 30.」

「During the first three months of the current consolidated fiscal year, there were no material changes in the issues that the group needs to address.」

「The company has identified the following issues to be addressed in order to convert this rising demand into orders: ① strengthening its service lineup, ② strengthening its service delivery structure, and ③ improving its data creation, analysis and extraction technologies, and is taking the following steps.」

「There have been no material changes in the issues to be addressed by the Group during the nine-month period ended December 31.」

「There have been no material changes in the issues to be addressed by the Group during the six-month period ended September 30.」

「During the first three months of the current consolidated fiscal year, there were no material changes in the issues that the group needs to address.」

「The second phase of Data Health Plans began in fiscal 2018, and demand from municipalities nationwide, as insurers, is expected to increase as Data Health enters full operation. The company has identified the following issues to be addressed in order to convert this rising demand into orders: ① strengthening its sales structure, ② strengthening its service lineup, ③ strengthening its service delivery structure, and ④ improving its data creation, analysis and extraction technologies, and is taking the following steps.」

「The company aims to support municipal public health nurses through e-learning to expand its system for providing guidance to prevent the progression of lifestyle-related diseases, and to build a support system for health support pharmacies. Through these initiatives, the company aims as a group to differentiate its technology at Stage D, the implementation stage of the Data Health PDCA cycle, while further promoting Data Health and expanding its results.」

「The company is also actively investing in research and development to improve existing services and prepare for the launch of new services.」

「The company is also actively investing in research and development to improve existing services and prepare for the launch of new services.」

「We also analyze claims data to monitor, check and measure the results of health promotion programs, providing programs with visible outcomes managed through the PDCA cycle.」

「In the data health-related market, following demand for planning P (Data Health Plans) in the PDCA cycle, demand is expected to expand for D (implementation of health promotion programs) and C (evaluation of health promotion programs). The company will strengthen its service lineup for identifying and implementing highly effective health promotion programs tailored to insurers' needs, using its expertise in claims data analysis, and for monitoring those programs.」