Newly Listed Company Introduction Report (Issued by The Stock Research Center)

D&M COMPANY (189A TSE Growth)June 18, 2024

Providing consulting and financial support to medical institutions and elderly nursing
care providers to improve their management.
This report is an English translation of part of the report issued on June 14, 2024.
For inquiries concerning the report, please contract info@stock-r.org【189A D&M COMPANY Sector：Services】
Fiscal YearNet sales

YoY(mn yen)(%)

Operatingprofit

YoY(mn yen)(%)

Ordinaryprofit

YoY(mn yen)(%)

ProfitYoY(mn yen)

(%)

EPS

BPS

DPS(yen)(yen)(yen)

95.0

611.4

5.0

May 2022

930-

234-

234-

145

May 2023

1,111

19.5

236

0.9

250

6.8

171

17.9 111.9

718.3

5.0

1,177

5.9

275

16.5

270

8.0

177

3.5 115.6-

5.0

May 2024f-

Note: Consolidated basis.Figures for the fiscal year ending May 2024 is the company's forecasts.
It conducted 1:2,000 stock split on October 14, 2023.Per share indicies are adjusted retroactively.

Providing Management Consulting and Financial Support to MedicalInstitutions and Others
The D&M Company group, which consists of the company and two subsidiaries, provides
various services to elderly nursing care providers, hospitals and other medical institutions.
These services include (1) financial support through the purchasing of medical and longterm care fee receivables, (2) consulting and M&A support to improve management, (3)leasing and sales of medical equipment, etc., and (4) management support services suchas temporary staffing and business outsourcing.
The company's sales composition in fiscal year ended May 2023 were (1) finance andinvestment (F&I) 48.8%, (2) consultation and business renovation (C&Br) 28.2%, and (3)human resources and outsourcing (HR&OS) 23.0%. By customers, medical institutions
accounted for about 70%, and elderly nursing care providers and others accounted forabout 30%.
For F&I services, the company provides medical and long-term care fee receivables
services, while its subsidiary D&M Partners provides medical equipment leasing services.
The purchase of medical and long-term care fee receivables involves the company
entering into long-term agreements over a period of about five years with medical
institutions, elderly nursing care facilities and others. These agreements transfer medical
and long-term care fee receivables that the entities have from insurers such as national
health insurance, social insurance and long-term care insurance. The company purchases
both fixed receivables, which are for services that have already been provided and future
receivables, which are expected to arise in the future due to ongoing business operations.
As of the end of February 2024, the number of entities from which the company purchased
receivables was 64 and the balance of purchased receivables was 7,016 million yen. Thecompany mainly procures funds through bank loans, with a balance of 6,955 million yen
in borrowings, of which 6,054 million yen is in short-term borrowings.
For C&Br services, the company provides services such as management diagnosis,
business improvement consulting, cost reduction consulting and M&A support. Its
subsidiary, D&M Partners, handles medical equipment sales and other products.
The HR&OS services are handled by a subsidiary, D&M Carrier, which provides
recruitment, temporary staffing, outsourcing and other services.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
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not be copied, reprinted, quoted, etc. without permission.

Newly Listed Company Introduction Report (Issued by The Stock Research Center)

D&M COMPANY (189A TSE Growth)June 18, 2024

Financial Statements
Statement of income

Fiscal Year(%)(mn yen)(%)(mn yen)(%)(mn yen)Nine monthsto Feb.2024

May 2023

May 2022

Net sales

930

100.0

1,111

100.0

899

100.0

Cost of sales

289

31.1

455

41.0

339

37.7

Gross profit

640

68.8

655

59.0

560

62.3

Selling, general and administrative expenses

406

43.7

419

37.7

333

37.0

Operating profit

234

25.2

236

21.2

227

25.3

0-

14-

4-

Non-operating income

0-0-

5-

Ordinary profit

234

25.2

250

22.5

226

25.1

Profit before income taxes

234

25.2

250

22.5

226

25.1

Net profit

145

15.6

171

15.4

148

16.5

Non-operating expenses

Balance sheet

Fiscal YearCurrent assets
Cash and deposits
Accounts receivable-tradeInventories
Non-current assets
Property, plant and equipment(%)(mn yen)(%)(mn yen)(%)(mn yen)Feb.2024

May 2023

May 2022

98.4

5,482

97.2

8,007

98.9

8,299

693

12.3

756

9.3

558

6.6

4,185

74.2

6,602

81.5

7,095

84.1

------

157

2.8

89

1.1

135

1.6

9

0.2

290.4

27

0.3
0.0

2

0.0

2

0.0

1

145

2.6

57

0.7

106

1.3

Total assets

5,639

100.0

8,096

100.0

8,434

100.0

Current liabilities4,040

71.6

6,228

76.9

6,581

78.0

2

0.0

6

0.1

40.0

3,672

65.1

5,546

68.5

6,054

71.8

Current portion of long-term borrowings

176

3.1

400

4.9

344

4.1

Current portion of bonds payable

40

0.7

50

0.6

-

-

661

11.7

766

9.5

610

7.2

Bonds payable

50

0.9

-

---

Long-term borrowings

561

9.9

699

8.6

557

6.6

937

16.6

1,101

13.6

1,242

14.7

937

16.6

1,101

13.6

1,242

14.7

Intangible assets
Investments and other assets

Accounts payable - trade
Short-term borrowingsNon-current liabilities

Net assets
Owners' equity

Statement of cash flows

Fiscal Year

Cash flows from operating activities

May 2022

May 2023(mn yen)(mn yen)911-2,18745

Cash flows from investing activities

3245

Cash flows from financing activities-1,166

2,172

-7

-7

Depreciation

Dividends paid
Net increase in cash and cash equivalents

-223

30

Cash and cash equivalents

610

641

Note:Consolidated
Source: Prepared by Stock Research Center based on the notifiable prospectus.

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makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

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