Company Research and Analysis Report
FISCO Ltd.
http://www.fisco.co.jp

MRT Inc.
6034 TSE Mothers

7-Oct.-16

Important disclosuresand disclaimers appear
at the end of this document.
FISCO Ltd. Analyst
Nobumasa Morimoto*1	At the end of FY3/16, the “Gaikin”
service connected about 18,000
medical doctors with about 9,000
medical institutions.
*2	MRT NEO has capital of ¥60mn
and is owned 60% by MRT and
40% by iFLAG.

伪伪Launching new services, such as “Pocket Doctor”,
to accelerate growth from FY3/18
MRT Inc. <6034> provides high-value-added internet services, mainly for medical doctors andmedical institutions, through medical information platforms based on the perspective of medical
doctors. The Company’s main business is the “Gaikin”*1 service, which introduces medical doctors
seeking part-time work and registered with MRT to medical institutions needing doctors. This service
is offered primarily in large metropolitan areas of Japan, including Greater Tokyo, where MRT
originated, Greater Nagoya, and Greater Osaka.
Since listing its shares in December 2014, MRT has been enlarging its medical information platforms,
enabling it to increase its conventional businesses by expanding its areas of operation and to establish
new businesses. In 2015, the Company set up offices in Nagoya and Osaka. In December 2015,
it established MRT NEO*2 as a joint venture with Hikari Tsushin, Inc. <9435> and its consolidated
subsidiary, iFLAG Co., Ltd. In March 2016, MRT started offering the icashica.com (“Shica.com”)
website service, which enables consumers to search for and inquire about providers of dental care.
In February 2016, MRT announced plans to start its “Pocket Doctor” service, Japan’s first service fortelemedicine and counseling about healthcare using smartphones and tablet devices. This service
was jointly developed with OPTiM Corp. <3694>, which develops platforms for the internet of things.
In April 2016, the “Pocket Doctor” service started providing family doctor service, and in July, it
started offering appointment counseling services.
In the fiscal year through March 2016, i.e., in FY3/16, MRT generated consolidated sales of ¥1,001mn,
which was 20.4% more than its non-consolidated sales in FY3/15. Its consolidated operating profit
was ¥199mn in FY3/16, which was 14.7% more than its non-consolidated operating profit in FY3/15,
and its consolidated net profit attributable to owners of parent grew 47.0% year on year (YoY) to¥140mn. These figures exceeded Company forecasts and were due to the strong performance of
the “Gaikin” referral service, which introduced 4,500 more medical doctors to hospitals than it did in
FY3/15 and partially revised its pricing structure favorably.
In the first quarter of FY3/17, i.e., in Q1 FY3/17 (April–June 2016), MRT expanded its “Gaikin” referral
service, mainly in Greater Tokyo, Nagoya and Osaka, and, through business agreements with othercompanies, increased the number of doctors registered for this service. As a result, the number ofdoctor referrals to medical facilities increased by 17% YoY. Consolidated sales reached ¥293mn, andconsolidated operating profit came to ¥89mn, which was 41.8% of the operating profit projected by
the Company for all of FY3/17.
For FY3/17, MRT forecasts a 19.8% YoY rise in consolidated sales to ¥1,200mn and a 7.0% increasein consolidated operating profit to ¥213mn. The Company plans to invest several tens of millions of
yen in its new “Pocket Doctor” service and a new micro blood test service in FY3/17. However, itaims to add 150 medical offices as customers for its “Medical Office Groupware”, which is a networkof medical offices using its Net Medical Office ® groupware, and it intends to extend its services,
especially doctor referral service, throughout Japan. Thus, it expects to increase the number ofdoctor referrals to medical facilities by 17% YoY. We at FISCO consider the Company’s forecasts
to be conservative because the number of doctors registered with the Company is rising briskly
accompanying the expansion of the Company’s areas of operation.
FISCO believes that FY3/17 will be a year for the Company to stress the accumulation of doctors andmedical institutions for its new services, such as “Pocket Doctor”, in preparation for strong growthfrom FY3/18. Thus, we do not foresee strong profit growth in FY3/17. However, we foresee great
potential demand for MRT’s services because improving medical services is a major component ofJapan’s growth strategy and the need for health care services is growing as Japan’s population ages.
This demand, coupled with the increase in the number of doctors and medical institutions using theCompany’s services, should propel sales and profit growth in coming years. The trend of increase in
the number of doctors and medical institutions using the Company’s new services, such as “Pocket
Doctor”, is likely to indicate the potential growth of the Company’s sales and profits.

We encourage readers to review our complete legal statement on “Disclaimer” page.
1

伪伪Check Point• Consolidated sales exceeded ¥1bn for the first time in FY3/16.
• The number of doctors registered with the Company and the number of doctor referrals to
medical facilities are rising as the Company expands its areas of operation.
• The number of doctors and medical institutions using the Company’s new services, such as“Pocket Doctor”, should be monitored.

MRT Inc.
6034 TSE Mothers

7-Oct.-16㼀㼞㼑㼚㼐㻌㼛㼒㻌㻿㼍㼘㼑㼟㻌㼍㼚㼐㻌㻻㼜㼑㼞㼍㼠㼕㼚㼓㻌㻼㼞㼛㼒㼕㼠㻿㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻌㼍㼤㼕㼟㻕

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Important disclosuresand disclaimers appear
at the end of this document.

㻝㻘㻞㻜㻜

FISCO Ltd. Analyst
Nobumasa Morimoto

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伪伪Company Outline and History
MRT originated as a cooperative organization of doctors
affiliated with the University of Tokyo Hospital; it then used
the internet to systematize the introduction of substitutedoctors(1) Company Outline
The Company’s corporate philosophy is “to contribute to society with medical care in mind”. The
Company provides internet services, such as introducing medical doctors to medical facilities, using
medical information platforms conceived and operated from the perspective of medical doctors.
Because it started out as a cooperative organization of doctors affiliated with the University of Tokyo
Hospital, its main base of operations is the Tokyo Metropolitan area and the three main prefectures
adjoining this area: Saitama, Chiba, and Kanagawa. Since 2015, the Company has been extending
its areas of operation throughout Japan, opening offices in Nagoya and Osaka. It has also been
buttressing its medical information platforms to enable the growth of its current businesses and thestart of new businesses.

We encourage readers to review our complete legal statement on “Disclaimer” page.
2

■■Company Outline and History(2) Company History

MRT Inc.
6034 TSE Mothers

7-Oct.-16*1	
When a doctor
affiliated with aImportantdisclosures
university hospital is asked to workanddisclaimers
appearat other medical facilities,
includinguniversity-affiliated city hospitals,
at
the
end
of
this
document.
his/her medical office instructs or
introduces where to work to thedoctor.

FISCO
Ltd.
Analyst*2	This reform
allowedmedical interns
to freely select the hospitals for their
Nobumasa
Morimoto
training, instead of being restricted
to medical offices affiliated withthe universities from which they
graduated. This reform has allowedinterns to flock to popular hospitals,
either university hospitals or private
hospitals, and has been cited as
causing an uneven distribution of
doctors and doctor shortages atsome hospitals.

In January 2000, Dr. Hyoe Tomita, the current Chairman of the Board of MRT, and his associates
established Medical Research and Technology as a limited liability company. Until this company
was set up, medical doctors affiliated with university hospitals had relied on their relationships oftrust with other doctors to work outside the university hospitals*1. Medical Research and Technology
systematized this process using internet technology, which also allowed the inclusion of more
doctors and medical institutions than an ad hoc system of professional referrals. In May 2000,
Medical Research and Technology received a license for charged employment placement service
and started this business. In October 2004, the Company received a license for general worker
dispatching undertaking, and in October 2006, it reorganized as a stock company. The number ofdoctors registered with the Company, primarily graduates of Tokyo University, continued to increase,due in part to the Company’s word-of-mouth reputation, and due to Japan’s introduction, in April
2004, of a new system for the clinical training of medical interns*2, which aggravated a lack of doctors
at some hospitals. In May 2008, the cumulative number of the Company’s doctor introductions to
medical facilities exceeded 100,000.
In April 2010, Mr. Toshimasa Baba became CEO of Medical Research and Technology and changed
the management approach of the Company from a family orientation to a more objective organizational
orientation. In March 2012, Medical Research and Technology started offering its medical officegroupware to assist the operations of medical offices free of charge. This service attracted many
medical offices and contributed to an increase in the number of doctors registered with the Company.
Thus, in May 2013, the cumulative number of doctor introductions by the Company surpassed
500,000. In September 2014, Medical Research and Technology changed its name to MRT Inc., andin December 2014, MRT listed its shares on the Mothers Market of the Tokyo Stock Exchange toincrease the added value of its registered doctors and to achieve greater social recognition.
Since listing its shares, MRT has aggressively expanded its existing businesses and entered new
businesses. To raise the recognition of the Company and its existing services among doctors andmedical facilities and to increase its network of registered doctors, the Company has expanded its
areas of operation, opening an office in Nagoya in March 2015 and one in Osaka in September
2015. In September 2015, the Company established a formal business tie with RIZAP Co., Ltd., in
October, it set up a relationship with Recruit Medical Career Co., Ltd., and in May 2016, it agreed
to cooperative operations with cookpad-baby Inc., a subsidiary of Cookpad Inc. Through these
alliances, the Company expanded its network of registered doctors for its main business.
The first new business the Company entered since listing its shares was the “Good Doctors” website,which provides information on medical care and healthcare and was launched in April 2015. In
August 2015, MRT invested in MBS Co., Ltd., which develops equipment for the analysis of blood
samples drawn from the fingertip. In September 2015, MRT established a business agreement with
OPTiM Corp. to jointly develop the “Pocket Doctor” telemedicine and health counceling service. In
December 2015, MRT concluded an equity and business sharing agreement with the Hikari Tsushingroup of companies and established MRT NEO Inc. with Hikari Tsushin subsidiary iFLAG. As a resultof this acquisition and these agreements, the Company launched its “Shica.com” website in March
2016 and its “Pocket Doctor” service in April 2016.
Company History
Date
Event
January 2000 Medical Research and Technology, a limited liability company, was established as acooperative organization of doctors affiliated with the University of Tokyo Hospital
May 2000 Obtained a business license for charged employment placement service
October 2004 Obtained a business license for general worker dispatching undertaking
October 2006 Reorganized as a stock company
March 2012 Medical Research and Technology started offering its medical office groupware to assist theoperations of medical offices
September 2014 Medical Research and Technology changed its name to MRT Inc.
December 2014 MRT Inc. listed its shares on the Mothers Market of the Tokyo Stock Exchange
March 2015 Opened an office in Nagoya
April 2015 Started operating the “Good Doctors” website, which offers information about medical
treatment and healthcare
August 2015 Took an equity stake in MBS Co., Ltd.
September 2015 Opened an office in Osaka
December 2015 Established the joint venture MRT NEO Inc. Moved the head office to Jinnan, Shibuya Ward,
Tokyo.
March 2016 Started offering the “Shica.com” website for searching for dental clinics and inquiring about
services at these clinics
April 2016 Started offering the “Pocket Doctor” service for telemedicine and health counseling

We encourage readers to review our complete legal statement on “Disclaimer” page.
3

伪伪Japanese market for doctor referrals and Company
strengths

MRT Inc.
6034 TSE Mothers

7-Oct.-16*	In September
2010, Japan’s
Importantdisclosures
Ministry of Health, Labour andanddisclaimers
Welfare announced appear
its “Summaryof an Investigation of the Number
at
the
end
of
this
document.
of Doctors Needed at Hospitals andOther Medical Facilities”. According
to this report, as of June 1, 2010,
the medical
FISCO
Ltd.institutions
Analystsurveyed
hired about 30,000 doctors on a
Nobumasa
Morimoto
part-time basis, calculated basedon a work week of 40 hours. This
number equaled 18.3% of the total
number of doctors working at these
institutions, 167,000.

Internet services based on a doctor’s perspective and a
network of registered doctors are main strengths; there arefew competitors in the Company’s main business(1) Japanese market for doctor referrals for part-time work
Japanese demand for part-time doctors is huge*. There are several reasons for this demand. For
one, there are more patients in Japan than can be cared for by the number of doctors. There is achronic shortage of doctors nationwide and few medical institutions can augment the number ofdoctors in-house. Another reason is that institutions in rural areas and those specializing in unpopulardisciplines cannot offer high-quality medical treatment.
(2) Company strengths and competition
Given this industry background, MRT has three main strengths: 1) platforms of information on medicalcare that use the internet, 2) a doctor referral service that emphasizes a doctor’s perspective, as
determined by practicing doctors, and 3) a network of registered doctors accumulated since theCompany’s founding.
To succeed in referring specialized medical personnel, a company must be able to respond quickly
to a request for such personnel based on an understanding of factors such as the ability of a doctor
to handle emergency patients and emergency surgery, the specialty of alma mater networks among
medical universities, and the specialty skills and experience of a doctor. MRT’s referral system uses
the internet to find the best doctor for an assignment quickly. Since its founding, the Company has
amassed administrative experience and knowledge and used this background to build a networkof registered doctors, which serves as the foundation of its main business. This service stresses
convenience for its doctors.
MRT’s main business of introducing or referring doctors to part-time work requires a goodunderstanding of the peculiarities of the medical profession. This requirement constitutes a highbarrier to entry into this business, so the Company has few competitors. MRT’s network of registereddoctors, built through referrals and word-of-mouth, also distinguishes the Company from competitors.
Thus, the cumulative number of the Company’s doctor referrals continues to grow. On the other
hand, the barriers to entry into the business of introducing personnel as full-time employees, which
requires an intermediary staff, are low. There are many competitors in the business of introducing
ordinary workers as full-time employees, but MRT is offering the services as value-added service for
its registered doctors.
(3) Business risk and other risks
MRT’s medium-to-long-term growth is likely to depend on the success of the new services that
it is launching in April 2016, such as the “Pocket Doctor” service for telemedicine and for healthcounseling. The Company plans to increase its spending to promote the sales of the “Pocket Doctor”
service. If this service does not grow as intended by the Company, it could adversely affect theCompany’s sales and profits. However, we consider this risk to be limited because the “Pocket
Doctor” service is initially aimed at replacing the demand for follow-up medical advice over the
telephone.
The medical institutions served by MRT must adhere to laws and regulations governing medical
practice and drugs. If these laws and regulations change, the changes could hurt the Company’sbusiness.

We encourage readers to review our complete legal statement on “Disclaimer” page.
4

■■Japanese market for doctor referrals and Company strengths㻺㼛㼚㻙㼏㼛㼚㼟㼛㼘㼕㼐㼍㼠㼑㼐㻌㻿㼍㼘㼑㼟㻌㼍㼚㼐㻌㻻㼞㼐㼕㼚㼍㼞㼥㻌㻼㼞㼛㼒㼕㼠㻔¥㼙㼚㻕㻿㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻌㼍㼤㼕㼟㻕㻥㻜㻜

6034 TSE Mothers

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Important disclosuresand disclaimers appear
at the end of this document.

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7-Oct.-16

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MRT Inc.

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Source: Compiled by FISCO based on the Company’s prospectus and its Japanese securities report

FISCO Ltd. Analyst
Nobumasa Morimoto

伪伪Past Business Results
Rate of sales growth has accelerated since CEO Baba
implemented organizational management
Since Mr. Baba became CEO of MRT at the start of FY3/11 and switched the Company’s management
approach to an organizational basis, MRT’s sales growth has increased. In the five fiscal years
through FY3/15, sales grew each year by an average rate of 19.0% per year. Over the same period,
ordinary profit advanced by an average annual rate of 90.5%.

*1	In September 2012, the Company
discovered that, in March and Aprilof that year, a software program
had been planted in the Company’s
computer system that allowed
the incoming email of Company’s
specific director to be automaticallyforwarded illegally to the email
address of an individual. The
makers of this program could not
be identified. Upon discovering thisbreach, the Company notified thepolice and launched an internal
investigation that concluded that
personal information may havebeen divulged as a result of thebreach. A former employee wasarrested as a result of theseinvestigations.
*2	This platform is a non-profit
organization responsible for theeducation, research and personal
development of leading doctors toserve as professors at university
laboratories or the departmentsof university hospitals. There are
81 medical schools in Japan, andmany doctors are affiliated with oneof the approximately 2,000 medical
offices in the country.

In FY3/14, profit fell notably YoY because the Company increased the number of sales people tosupport future growth and the number of employees overseeing its computer system following theleakage of personal information by a former employee in charge of the system*1. The costs of these
personnel increases reduced profit temporarily. In FY3/15, profits returned to a growth trend, with
non-consolidated sales rising 14.2% YoY to ¥831mn and operating profit jumping 212.6% to ¥173mn.

伪伪Description of Businesses
The service referring doctors for part-time work is the main
business; the Company has just started new businesses, suchas the “Pocket Doctor” service
The MRT group comprises MRT, consolidated subsidiary MRT NEO Inc., and affiliate MBS, which isaccounted for by the equity-in-earnings method. MRT operates three platforms of information about
medical care: one connecting doctors and medical institutions, one connecting doctors, medical
offices*2 and companies, and one connecting doctors and consumers. Through these platforms,
MRT provides information services with high added value to doctors and other medical professionals.
These services are divided into two categories: 1) doctor introductions or referrals, and 2) the
introduction of other medical professionals for part-time work or to change jobs (co-medical services)and other services. The main doctor introduction services are “Gaikin”, which aims to match doctors
seeking part-time work with medical facilities needing part-time doctors 24 hours a day every day of
the year, and “career”, which introduces doctors seeking new full-time employment. The co-medical
services are for nurses, pharmacists, clinical laboratory technicians, clinical engineers, and radiology
technicians. In FY3/16, doctor introductions accounted for 93.8% of total consolidated sales, and comedical and other services accounted for 6.2%.

We encourage readers to review our complete legal statement on “Disclaimer” page.
5

■■Description of Businesses㻮㼞㼑㼍㼗㼐㼛㼣㼚㻌㼛㼒㻌㻲㼅㻟㻛㻝㻢㻌㼏㼛㼚㼟㼛㼘㼕㼐㼍㼠㼑㼐㻌㼟㼍㼘㼑㼟㻌㼎㼥㻌㼠㼥㼜㼑㻌㼛㼒㻌㼟㼑㼞㼢㼕㼏㼑㻰㼛㼏㼠㼛㼞㻌㼕㼚㼠㼞㼛㼐㼡㼏㼠㼕㼛㼚㼟㻵㼚㼠㼞㼛㼐㼡㼏㼠㼕㼛㼚㼟㻌㼛㼒㻌㼏㼛㻙㼙㼑㼐㼕㼏㼍㼘㻌㼜㼞㼛㼒㼑㼟㼟㼕㼛㼚㼍㼘㼟㻌㼍㼚㼐㻌㼛㼠㼔㼑㼞㻌㼟㼑㼞㼢㼕㼏㼑㼟㻢㻚㻞㻑

MRT Inc.
6034 TSE Mothers

7-Oct.-16

Important disclosuresand disclaimers appear
at the end of this document.
FISCO Ltd. Analyst
Nobumasa Morimoto*	Since its inception, the Company
has used the terms “regular”
and “spot” for its part-time work
contracts. “Regular” means
employment for fixed hours every
week. There are two types of“regular” part-time employment:
1) short-term regular employment,
in which the doctor works
fewer than five days a week at
unspecified times but according
to the same provisions that apply
to regular employees, and 2)
part-time employment for at least
two months. “Spot” is one-timework for a set number of hours.
Accompanying a change in the
Company’s invoicing procedure
in FY3/16, some contracts for“regular” employment were
excluded from the total number ofits doctor introductions.

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Source: Compiled by FISCO from Company’s financial results summary
At the end of FY3/16, about 18,000 medical doctors were registered in MRT’s network. This
was about 2,000 more than had been registered at the end of FY3/15. Since the Company’s
establishment, about one-third of all graduates of Tokyo University’s medical department have joined
MRT’s network. At the end of FY3/16, MRT served about 9,000 medical institutions, which was about
1,000 more than it had served at the end of FY3/15.
●Information platform connecting doctors with medical institutions
1. Doctor referralsa) Introduction of doctors for part-time work
The “Gaikin” service of introducing doctors for part-time work automatically matches appropriate
doctors with medical institutions seeking doctors and aims to provide doctors 24 hours a day every
day of the year. This service supplies doctors according to regular employment contracts and spot
employment contracts*. The computer system used for this service reflects the wishes of the medical
institution requesting part-time help as much as possible. For spot contracts, most of the process
required up to a doctor’s employment is completed on site. MRT awards points to doctors for theirwork at medical facilities and their participation in Company campaigns and surveys. After a fixed
number of points have been amassed, the doctors can receive cash for the points.
Specifically, the procedure for introducing doctors for part-time work as follows.
1) A medical institution seeking part-time doctors must first register as a participant on MRT’s
website. It then posts the details of its request, such as medical field, work hours, and salary.
2) A doctor seeking part-time work first registers as a participant on MRT’s website, then confirms
the terms of employment being offered by a medical institution and applies for the job throughthe website.
3) The medical institution seeking part-time help confirms the details of the doctor applying forwork, and if it agrees to hire the doctor, it concludes an employment contract with the doctor
through MRT’s website. For regular employment contracts, MRT staff adjusts details, such as
the time when the doctor starts working.
4) MRT receives a fixed commission from the medical institution for introducing a doctor.
5) For regular employment, MRT staff maintains appropriate communication with the doctor andthe medical institution to support the conclusion of an employment contract between the parties
and to introduce another doctor to the medical institution promptly at the conclusion of theemployment contract.

We encourage readers to review our complete legal statement on “Disclaimer” page.
6

■■Description of Businesses㻯㼡㼙㼡㼘㼍㼠㼕㼢㼑㻌㼚㼡㼙㼎㼑㼞㻌㼛㼒㻌㼐㼛㼏㼠㼛㼞㻌㼞㼑㼒㼑㼞㼞㼍㼘㼟㻌㼒㼛㼞㻌㼜㼍㼞㼠㻙㼠㼕㼙㼑㻌㼣㼛㼞㼗（㼚㼡㼙㼎㼑㼞㻌㼛㼒㻌㼏㼍㼟㼑㼟）㻝㻞㻜㻘㻜㻜㻜
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MRT Inc.
6034 TSE Mothers

7-Oct.-16

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Important disclosuresand disclaimers appear
at the end of this document.
FISCO Ltd. Analyst
Nobumasa Morimoto㻜㻲㼅㻟㻛㻝㻜

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㻲㼅㻟㻛㻝㻡

㻲㼅㻟㻛㻝㻢

㻿㼛㼡㼞㼏㼑㻦㻌㻯㼛㼙㼜㼕㼘㼑㼐㻌㼎㼥㻌㻲㻵㻿㻯㻻㻌㼒㼞㼛㼙㻌㻯㼛㼙㼜㼍㼚㼥㻌㼜㼞㼛㼟㼜㼑㼏㼠㼡㼟㻌㼍㼚㼐㻌㻶㼍㼜㼍㼚㼑㼟㼑㻌㼟㼑㼏㼡㼞㼕㼠㼕㼑㼟㻌㼞㼑㼜㼛㼞㼠b) Doctor referrals for full-time employment by a new employer
For the “career” service of introducing doctors for new full-time employment, the doctors seeking
employment and the medical institutions seeking full-time doctors first register as participantson MRT’s website. MRT staff interview the doctors to clarify their expectations, then match themwith appropriate institutions. If a doctor and institution agree to terms of employment, they sign an
employment contract and MRT receives a fixed commission from the institution.
2. Other services (referring co-medical professionals, etc.)
MRT offers referral services for co-medical professionals, such as nurses, pharmacists, clinicallaboratory technicians, clinical engineers, and radiology technicians, similar to the referral services
for medical doctors. The Company also provides points to these co-medical professionals that canbe converted into cash.
● Information platforms for doctors, medical offices, and companies, and for doctors andconsumers
In addition to the services cited above for referring medical professionals to medical institutions,
MRT provides other services primarily for doctors and medical institutions but also for companies
and consumers. As the main purpose of these services is to increase MRT’s network of registereddoctors, most of these services are free of charge. The two main services of this type are MRT’s
medical office groupware and the “Good Doctors” website. In March 2016, MRT started offering
another such service, “Shica.com”, in April 2016, it began offering the “Pocket Doctor” service, and itplans to start providing micro blood test service soon.
1. medical office groupware
Medical offices perform a wide range of administrative tasks, including scheduling medical procedures,sharing information, making appointments, attendance management of doctors, introducing doctors
to private hospitals (including for part-time work) and recruitment for doctors. MRT offers these
services free of charge, aiming to build and expand medical doctor networks centered on university
medical offices. The merits of introducing MRT’s medical office groupware are as follows: for medical
offices, it greatly improves the efficiency and saves labor of performing these administrative tasks; for MRT, the broadened introduction of the groupware in university medical offices, as well as
medical offices at city hospitals and offices of individual doctors, has resulted in an increased numberof doctors registered to MRT.
At the end of FY3/16, 150 medical offices used MRT’s medical office groupware. This number was
2.5 times the number at the end of FY3/15 and included the medical offices at all 13 university
hospitals in Tokyo, as well as offices at university hospitals in Nagoya and Osaka. For FY3/17, MRT
intends to double the number of medical offices using its medical office groupware. To achieve thisgoal, it plans to improve the quality of its emergency services for medical offices and to approach
medical institutions other than university hospitals, such as city hospitals.

We encourage readers to review our complete legal statement on “Disclaimer” page.
7

■■Description of Businesses offices using MRT’s Net Medical Office ®
Cumulative number of medical㼓㼞㼛㼡㼜㻌㼟㼛㼒㼠㼣㼍㼞㼑㻔㻺㼛㻚㻌㼛㼒㻌㼙㼑㼐㼕㼏㼍㼘㻌㼛㼒㼒㼕㼏㼑㼟㻕
㻟㻡㻜
㻟㻜㻜
㻟㻜㻜

MRT Inc.

㻞㻡㻜6034 TSE Mothers

㻞㻜㻜
㻝㻡㻜
㻝㻡㻜

7-Oct.-16

㻝㻜㻜

㻢㻜

㻡㻜

Important disclosuresand disclaimers appear
at the end of this document.
FISCO Ltd. Analyst
Nobumasa Morimoto*	Media owned by companies totransmit information to consumers.

㻝㻜㻲㼅㻟㻛㻝㻠

㻲㼅㻟㻛㻝㻡

㻲㼅㻟㻛㻝㻢

㻌㻲㼅㻟㻛㻝㻣㻌㻱

Source: Compiled by FISCO from Company’s financial reports briefing materials

2. “Good Doctors”“Good Doctors” is an owned media* on which medical doctors and other healthcare professionals
can post the latest articles on ways to maintain a healthy life, hospitals, and diseases. MRT launchedthis media in April 2015 as a marketing tool between dectors and consumers. The Company plans tostart generating revenue from this service in FY3/17 through alliances with other companies.
3. “Shica.com”“Shica.com” is a website based on the platform connecting doctors and consumers. It offers originalcontent enabling consumers to search for and inquire about dental clinics throughout Japan. This
website is operated by MRT subsidiary MRT NEO and began operations in March 2016.
The “Shica.com” service has three distinctive traits: 1) in addition to providing information such as
the location of a dental clinic, its hours of operation, and the dental specialties offered, the website
provides information such as the availability of rooms for kids to play in and the availability of private
examination rooms; 2) the site offers photographs of the dentists and their clinics to impart anunderstanding of the atmosphere of the clinics, and 3) the site enables price comparisons of dental
clinics based on their specialties, treatment methods, and materials used. This website contains
information on more than 60,000 dental clinics throughout Japan. Of these, 7,000 clinics provide
original content and accept appointments and inquiries by telephone and internet.
4. “Pocket Doctor”
The “Pocket Doctor” service is based on the platform connecting doctors with consumers and is
the first service in Japan to provide medical treatment and health advice through smartphones andtablet devices. This service was developed by combining MRT’s information on medical treatment
and its networks of doctors and medical facilities with OPTiM’s remote management technology intoa reconstructed technology encompassing all the functions needed for telemedicine.
The “Pocket Doctor” service has three sub-services. The “family doctor” service began operatingin April 2016, the “appointment counseling” service started operating in July 2016, and the “urgent
counseling” service is to be started later in FY3/17. The “private medical treatment” service waslaunched with 1,340 medical facilities nationwide participating. For the time being, it is being offered
free of charge to participating medical facilities.

We encourage readers to review our complete legal statement on “Disclaimer” page.
8

■■Description of Businesses

MRT Inc.
6034 TSE Mothers

7-Oct.-16

The “Pocket Doctor” service has four distinctive characteristics: 1) the consumer inquiring about hisor her health through the service can transmit photographs and video movies taken with the camera
in his or her smart device to the doctor, as well as vital data gathered from wearable equipment or
healthcare equipment; thus, the doctor can gain a detailed understanding of the inquirer’s condition;2) the doctor can use red pen function or his or her fingertip to mark items that he or she wants
photographs of, allowing the doctor to explain the symptoms of the enquirer precisely; 3) the
doctor can answer “appointment counseling” or “urgent counseling” inquiries on unoccupied timeof consultation hours, thereby using his or her time efficiently; 4) the “Pocket Doctor” application
program can be installed on iPhones and iPads that operate on the iOS 8.0 operating system ormore advanced iOS operating systems and on other smart devices that operate on the AndroidTM
4.0 operating system or more advanced AndroidTM operating systems.
Service name
Users

Important disclosuresand disclaimers appear
at the end of this document.
FISCO Ltd. Analyst
Nobumasa Morimoto

Respondents

Generaldescription

Characteristics
Legally defineduse

Family doctor service
Appointment counseling
Patients who have been
examined previously byGeneral users
a medical doctor and areseeking follow-up treatment
Medical facilities
Medical doctors
A patient can receive follow- An inquirer can make anup treatment anywhere from appointment with a doctor
his or her regular doctor (orand/or receive advice
medical facility where theabout health from medical
patient was first treated). The specialists throughout Japan.
patient can consult the doctor This service can be used
about his or her condition and when there is no medical
receive treatment for affected specialist nearby and whenpart of the body using health a patient wants advice about
insurance, without visiting
his or her health from doctors
the medical facility. For theother than his or her family
present, MRT will not charge doctor.
medical facilities for thisservice.
• Advanced telephone follow- • Can choose the advising
up advicedoctor• Can use health insurance• Can choose the advising
time
Telemedicine

Remote advice about health

Urgent counseling
General users
Medical doctors
An inquirer can use thisservice to discuss his or her
health with a doctor any timeof the day and any day of
the year from any location.
The service is particularly
useful when there is a suddenchange in a person’s physicalcondition late at night, whensomeone is too busy to go toa medical facility although heor she is concerned about his
physical condition, and when
it is impractical to go to a
medical facility.
• Usable 24 hours a day, 365
days a year
• Cannot choose the doctor
Remote advice about healthFree of charge (there is a fee Advice fee ¥2,000 or ¥3,000
Advice fee from ¥500 per
Inquirers
for follow-up treatment)
per 10 minutes
monthBusiness
modelFree of charge (insurance
A fee is paid as remuneration A fee is paid as remuneration
Respondents
points can be calculated)
Date of service
April 2016
July 2016
Within FY3/17
startMore than 10,000 medical
facilities use the service,
Aiming for FY3/19
1,000 or more doctors
10,000 or more doctors
equivalent to 10% of all
medical facilities in Japan
Source: Compiled by FISCO from Company’s financial reports briefing materials

5. Micro blood test service
In August 2015, MRT concluded an agreement with MBS Co., Ltd. to take an equity stake in MBS
and cooperate in business with the company. MRT invested ¥147mn in MBS for a 19.5% equity
stake in the company. The two companies are jointly developing medical treatment and healthcare
services, centered on the micro blood test device being developed by MBS, by efficiently using the
networks of both companies. Specifically, MBS plans to start selling a device for test analysis soon.
After that but within FY3/17, MRT intends to launch a blood test service and to connect the test
results to the “Pocket Doctor” service.

We encourage readers to review our complete legal statement on “Disclaimer” page.
9

伪伪Business Trends
FY3/16 and FY3/17 are a period of investment for future growth●FY3/16 results

MRT Inc.

(1) Overview of FY3/16 results

6034 TSE Mothers

In FY3/16, MRT generated consolidated sales of ¥1,001mn, which was 20.4% more than the
Company’s non-consolidated sales in FY3/15. On the same basis, FY3/16’s consolidated operating
profit of ¥199mn was up 14.7% YoY and consolidated net profit attributable to owners of parent of¥140mn grew 47.0% YoY. Sales and profits exceeded the Company’s forecasts.

7-Oct.-16

Important disclosuresand disclaimers appear
at the end of this document.
FISCO Ltd. Analyst
Nobumasa Morimoto*1	MRT was sued by the former
director of its computer system
operations. The district court
dismissed the former director’s
demand for compensation, and theTokyo High Court dismissed the
director’s appeal of the decision by
the district court. The director did
not further appeal his case within
the time period allotted for appeal,so the district court’s decision wasaffirmed, and MRT was absolved ofany liability.

FY3/15 nonconsolidated
Resultvs. sales
831
152
18.4%
678
81.6%
505
60.7%
173
20.9%
155
18.7%

(¥mn)
FY3/16 consolidated
Co. e
1,000
180
165

Result
1,001
163
837
638
199
184

vs. sales
YoY
vs. Co. e
Sales
20.4%
0.2%
Cost of sales
16.4%
7.1%
Gross profit
83.6%
23.4%
SGA costs
63.8%
26.4%
Operating profit
19.9%
14.7%
10.6%
Ordinary profit
18.4%
18.6%
11.8%
Net profit attributable to
95
11.5%
108
140
14.1%
47.0%
30.5%
owners of parent
Source: Compiled by FISCO from Company’s financial results summary and financial reports briefing materials

In FY3/16, sales from the referral or introduction of doctors (for part-time and full-time employment)
grew 19.0% YoY to ¥939mn. This growth was led by sales from the “Gaikin” service of referring doctors
for part-time work. Due to the opening of offices in Nagoya and Osaka, the “Gaikin” service spreadin and around these cities. Thus, the number of doctor referrals by the “Gaikin” service increased by
4,500 YoY. Furthermore, the service partially revised its pricing in an advantageous way. Sales fromother services, mainly the referral of co-medical professional for employment, advanced 48.0% YoY
to ¥62mn. The large increase in net profit attributable to Company shareholders in FY3/16 was due
to extraordinary gains totaling ¥43mn. Of these gains, ¥21mn came from the reversal of a reserve
for litigation losses*1 and ¥21mn was the result of the reversal of a reserve for enhancing information
security*2.

*2	In March 2016, the Company’ssystem for evaluating thecomprehensiveness of its
information security management
system (ISMS) was certified. This
was the final step in the Company’s
policy to improve its information
security.

(2) Actions in FY3/16
In FY3/16, MRT invested heavily in the expansion of its existing businesses and in the creation of new
businesses. To increase the number of doctors and medical facilities registered with the Company,
MRT established a new office in Osaka in September 2015, after having set up a new office in Nagoya
in March 2015. These new offices helped to expand existing businesses. In September 2015, MRT
formed a business tie with RIZAP Co. Ltd., and in October, it concluded a similar relationship with
Recruit Medical Career Co., Ltd.

We encourage readers to review our complete legal statement on “Disclaimer” page.
10

■■Business Trends

MRT Inc.
6034 TSE Mothers

7-Oct.-16*	
To maintain disclosuresa continuous, stable
Importantrelationship with Hikari Tsushin andanddisclaimers
iFLAG, MRT made aappear
third-party
allocation of new shares to these
at
the
end
of
this
document.
companies, selling 135,000 sharesto each company, for a total of
270,000 new shares, equivalent to11.59% of
the Analyst
total number of MRT
FISCO
Ltd.
shares outstanding. Through thisNobumasa
Morimoto
allocation, MRT raised ¥392mn.
It used these proceeds to expand
its doctor referral services, to build
new services, and to invest in MRTNEO, the joint venture with iFLAG.

In April 2015, MRT concluded a business agreement with Revolver, Inc. to help develop the new“Good Doctors” business. In June 2015, MRT invested ¥66.5mn into Medley, Inc. and formed abusiness tie with that company to create new markets and exploit new business opportunities jointly.
In August 2015, MRT concluded an equity and business agreement with MBS Co., Ltd., whichdevelops equipment for the analysis of blood samples drawn from the fingertip. In September 2015,
MRT established a business agreement with OPTiM Corp. to jointly develop the “Pocket Doctor”
service. (This service was formally announced in February 2016)
In December 2015, MRT concluded an equity and business sharing agreement with Hikari Tsushin*, then established a joint venture, MRT NEO Inc. (capital of ¥60mn) with iFLAG, which is Hikari
Tsushin’s consolidated subsidiary, to develop a website for searching for and inquiring about dental
clinics throughout Japan using MRT NEO’s platform connecting consumers with medical clinics(dentists). Hikari Tsushin has been developing an advertising agency business and a solutions
business centering on a reservation and customer referral service for the “EPARK” brand ofrestaurants, dentists and beauty parlors, which has more than 10 million subscribers, and iFLAG
possesses ample knowhow and experience in operating reservation and customer referral systems.
MRT NEO built and operates the “Shica.com” website, which has won the top share of the Japanesemarket for such websites because it allows consumers to make appointments with dental offices
at convenient locations and times with desired specialists and based on original content from thedentists.

Funds acquired from share allocation to the Hikari Tsushingroup give MRT great freedom to pursue business growth(3) Financial position
At the end of FY3/16, MRT’s consolidated assets totaled ¥1,615mn. Current assets amounted to¥1,240mn and were comprised mainly of ¥1,084mn of cash and deposits and ¥103mn of accounts
receivable-trade. Cash and deposits grew in FY3/16 as a result of the capital raised by MRT throughits allocation of new shares to Hikari Tsushin and iFLAG and as a result of profit growth accompanying
business expansion. Fixed assets came to ¥374mn at the end of FY3/16, with tangible fixed assetsof ¥37mn, intangible fixed assets of ¥45mn, and investments and other fixed assets of ¥292mn,
including ¥220mn of long-term investments in MBS and in equity and business alliances to pursue
new business.
Liabilities totaled ¥342mn at the end of FY3/16, with current liabilities of ¥224mn and fixed liabilitiesof ¥117mn. Net assets amounted to ¥1,273mn. Of this amount, following the allocation of new sharesto Hikari Tsushin and iFLAG, capital stock grew to ¥425mn and additional paid-in capital reached¥385mn, while retained earnings increased to ¥416mn with the addition of FY3/16’s net profit.
Cash and cash equivalents at the end of FY3/16 were ¥1,084mn. Cash flow from operating activities
was positive by ¥139mn. The reserves for litigation losses and for information security contributed
negatively to cash flow from operations, as did payments such as income taxes, but the growth inprofit before income taxes and an increase in accounts payable more than offset these negative
contributions. Cash flow from investing activities was negative by ¥325mn, reflecting purchasing
investment securities and shares of subsidiaries and associates to establish new businesses. Cashflow from financing activities was positive by ¥441mn, mainly because of the allocation of new sharesto Hikari Tsushin and iFLAG in December 2015.
MRT’s current ratio and equity ratio, measures of financial health or safety, improved greatly YoY in
FY3/16 as a result of the capital obtained from the new share allocations. ROE and ROA, measuresof profitability, declined YoY in FY3/16 due to the large increase in net assets, but they remained
above 10%.

We encourage readers to review our complete legal statement on “Disclaimer” page.
11

■■Business Trends

Summary Financial Statement

FY3/15MRT Inc.
6034 TSE Mothers

7-Oct.-16

Important disclosuresand disclaimers appear
at the end of this document.
FISCO Ltd. Analyst
Nobumasa Morimoto

Absolute
FY3/16 change
YoY

942

1,240

Fixed assets
Total assets

95
1,037

374
1,615

Current liabilities
Fixed liabilities
Total liabilities

235
114
349

224
117
342

-10
3
-7

Net assets

687

1,273

585

1,037

1,615

578

216
-19
347

139
-325
441

828

1,084

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalents at
year-end

remarks

Cash and deposits+256 ,Accounts receivable-trade+37
279 Investments and other assets+256
578

Current assets

Total liabilities and net assets

(¥mn)

298

Capital stock+199, Capital surplus+199,
Retained earnings+140

Measures of financial safety
Current ratio
400.8% 553.1%
Equity ratio
66.3%
75.9%
Measures of profitability
ROE
20.7%
14.7%
Ordinary profit ÷ total assets (ROA)
19.7%
13.9%
Operating profit margin
20.9%
19.9%
Note: FY3/15 figures are non-consolidated
Source: Compiled by FISCO from Japanese securities report and Company’s financial results summary

Company forecasts for FY3/17
For FY3/17, MRT projects a 19.8% YoY rise in its consolidated sales to ¥1,200mn and a 7.0%
increase in its consolidated operating profit to ¥213mn.

FY3/16(¥mn)
FY3/17vs. sales
YoY % change
100.0%
19.8%
17.8%
7.0%
15.8%
3.0%

Resultvs. sales
Co. e
Sales
1,001
1,200
Cost of sales
163
16.4%
Gross profit
837
83.6%
SGA costs
638
63.8%
Operating profit
199
19.9%
213
Ordinary profit
184
18.4%
190
Net profit attributable to
140
14.1%
116
9.7%
-17.7%
owners of parent
Source: Compiled by FISCO based on Company’s financial results summary and financial reports briefing
materials.

The Company plans to invest several tens of millions of yen in its new “Pocket Doctor” service and its
new micro blood test service in FY3/17. However, it aims to add 150 medical offices as customers for
its medical office groupware, and it intends to extend its services throughout Japan. Thus, it expects
to increase the number of doctors referred to medical facilities for part-time work by 17% YoY.

*	cookpad-baby Inc. operates
the “Cookpad Baby” websitethat presents information about
pregnancy, giving birth, and raisinginfants. This company has delivered
iPad hospital guidance systems
to more than 300 gynecological
hospitals in Japan.

Accompanying MRT’s expansion of its areas of operation, the number of doctors registered with
the Company is increasing briskly. The number of medical offices subscribing to the medical officegroupware should also rise notably in FY3/17 because once a medical office at a university subscribes
to this service, other medical offices easily follow, and in FY3/16, the medical offices of all 13
universities in Tokyo subscribed to the service, while university medical offices in Nagoya and Osakaalso subscribed following the opening of MRT offices in these cities. Furthermore, in May 2016, MRT
reached an agreement for cooperative operations with cookpad-baby Inc., a subsidiary of Cookpad
Inc. <2193>, in order to increase its network of registered doctors.* Given these developments andprospects, FISCO considers the Company’s forecasts for FY3/17 to be conservative.

We encourage readers to review our complete legal statement on “Disclaimer” page.
12

伪伪Medium-term growth strategy
MRT’s top priority is to expand its network of registereddoctors by raising the awareness of doctors and medical
facilities about the MRT group and its new services

MRT Inc.
6034 TSE Mothers

7-Oct.-16*1	These problems
will result from
Importantdisclosures
Japan’s post-war generation,anddisclaimers
appeardefined as those bornfrom 1947 to1951), reaching or exceeding the
at
the
end
of
this
document.
age of 75 (late elderly) by about
2025. At the same time, Japan’s
working-age population of 15–64
continuesLtd.
to shrink.
Thus, by 2025,
FISCO
Analystthere should be about 21.79 million
Nobumasa
Morimoto
Japanese aged 75 or greater,
accounting for 18.1% of the total
population. Accompanying thisaging of the population, the demand
for medical care, home care, andwelfare services is expected to rise.
The costs and benefits of medical
and home care are seen changing
significantly, exerting a negative
impact on social security spendingby the government.
*2	According to calculations by
Japan’s Ministry of Health, Labourand Welfare, medical expendituresin Japan are likely to rise from
¥38trn in fiscal 2011 (the year
through March 2012) to ¥60trn infiscal 2025.

The global market for medical care services is about ¥520trn, and it is growing rapidly accompanying
the aging of the global population. Japanese society is aging, and this process is projected to leadto problems by 2025*1, including a great increase in medical expenditures*2. The need for not only
medical care services, but preventative medicine and healthcare, is expanding quickly. Thus, theJapanese government is promoting a national strategy to buttress medical care services as animportant part of its overall growth strategy.
MRT has not announced a medium-term plan of operations, so its medium-term performance goals
are unknown. However, the Company aims to increase the number of its registered doctors andmedical facilities through its medium-term strategy. The Company also intends to increase the namerecognition of its group and services by 1) expanding its services to medical offices, 2) expanding its
areas of operation into rural areas of Japan, 3) making effective use of its media, and 4) diversifying
its services.
Specifically, MRT plans to expand its established businesses by offering more services to university
medical offices, thereby attracting more university medical offices, as well as medical offices at city
hospitals and at the offices of individual doctors. By setting up more offices outside Greater Tokyo,
the Company hopes to shrink the distance between it and doctors and medical facilities in rural
areas of Japan. The growth of its established businesses should serve as a base for a strategy ofdeveloping new services, such as “Pocket Doctor”, “Shica.com”, and a micro blood test service,
as future growth drivers. In new services, MRT’s top priority is to lift the awareness of doctors andmedical facilities about its “Pocket Doctor” service because the Company wants to increase thenumber of doctors and facilities using this service by FY3/19.
The Company’s main goal is to entice doctors and medical facilities to use its new services. The
pursuit of this goal will probably not contribute much to profit growth in the near term. Thus, FISCO
considers the Company to be in a stage of development for growth over the medium-to-long term.
The government’s strategy to enhance medical care services and the rapid increase in healthcare
needs accompanying the aging of Japanese society indicate large potential demand for MRT’s
services. If the Company can increase the number of doctors and facilities using its services, it
should be able to increase its profits in the future. Therefore, FISCO intends to monitor the growthin the number of doctors and facilities using the Company’s “Pocket Doctor” and other new services.

伪伪Shareholder Returns
For the near future, the Company will retain its profits toinvest for growth; once its new businesses turn profitable, it
may pay dividends
The Company has announced that growth is its major concern, so for the foreseeable future, itwill retain profits for investment in new businesses and pay no dividends. However, the Company
would consider paying part of its profits as dividends if its retained earnings grew to a level wherebusiness growth and financial stability were fairly assured. Now, the possibility and timing of dividend
payments are uncertain.
CEO Baba would like to pay dividends as soon as possible, so FISCO sees such payments as likely
after the “Pocket Doctor” and other new services turn profitable.

We encourage readers to review our complete legal statement on “Disclaimer” page.
13

Disclaimer
FISCO Ltd. (the terms “FISCO”, “we”, mean FISCO Ltd.) has legal agreements with theTokyo Stock Exchange, the Osaka Exchange,and Nikkei Inc. as to the usage of stock
price and index information. The trademark and value of the “JASDAQ INDEX” are theintellectual properties of the Tokyo Stock Exchange, and therefore all rights to them belong
to the Tokyo Stock Exchange.
This report is based on information that we believe to be reliable, but we do not confirm or
guarantee its accuracy, timeliness,or completeness, or the value of the securities issued bycompanies cited in this report. Regardless of purpose,investors should decide how to use
this report and take full responsibility for such use. We shall not be liable for any result of its
use. We provide this report solely for the purpose of information, not to induce investment
or any other action.
This report was prepared at the request of its subject company using information provided
by the company in interviews, but the entire content of the report, including suppositions andconclusions, is the result of our analysis. The content of this report is based on informationthat was current at the time the report was produced, but this information and the content
of this report are subject to change without prior notice.
All intellectual property rights to this report, including copyrights to its text and data, areheld exclusively by FISCO. Any alteration or processing of the report or duplicationsof the report, without the express written consent of FISCO, is strictly prohibited. Anytransmission, reproduction, distribution or transfer of the report or its duplications is also
strictly prohibited.
The final selection of investments and determination of appropriate prices for investment
transactions are decisions for the recipients of this report.
FISCO Ltd.