Management strategy

1. Basic management policy

The MTI Group understands that creating services required at any given time in this time of constant change and delivering them to every part of the world are of particular importance in the process of create a society in which customers can live more freely and be who they are. Under the vision of “Making the world move a step forward,” we will continue to be our customers’ partner, supporting them in their daily lives, and will contribute to the betterment of future society by providing services that make our customers’ lives more convenient and affluent.

2. Target management indexes

The MTI Group believes that sales growth rate and degree of improvement in operating margin are important management indices. Through the sustained improvement of these indices, we aim to continuously enhance corporate value. In addition, the Group’s policy regarding the total return ratio is to return profits to shareholders targeting a payout ratio of 35% over the medium term.

3. Medium to long-term management strategy

The MTI Group aims to achieve sustained sales growth and continuous profit accumulation by utilizing earnings from the content business to make upfront investments in the healthcare business and school DX business, which are expected to have high growth potential. Additionally, we will foster and develop multiple new business areas that can generate stable revenue. Our medium to long-term management strategy is as follows.

(1) Suppressing the earnings decline in the content business

In the content business, the number of paying subscribers has been leveling off, and we are using the revenue to make up-front investments in the healthcare business and school DX business, which are expected to have high growth potential in the future.
As there is room for future expansion in the number of paying subscribers for security-related services, we will continue to focus on increasing the number of paying subscribers. We will also expand the business of providing original comic to comic distributors by increasing the number of original comic.

(2) Sales growth in the healthcare business

The healthcare business has great potential for future growth. If we build a service of providing long-term support for medical institutions, namely hospitals, pharmacies and health check institutions, as well as health insurance societies, local governments and other customers, it is expected to be a more stable stock-type business. We will therefore work on it for the medium and long term.
The Company provides an array of services related to the medical and healthcare fields and will work to make each service profitable at an early stage. At the same time, the Company will strive to establish services that are convenient for customers by integrating services in which multiple organizations such as medical institutions, dispensing pharmacies, medical checkup facilities, health insurance associations, and local governments collaborate with one another.

(3) Sales growth in the school DX business

In the School DX business, we will aggressively pursue this business because it has large future growth potential and can become a stable stock-type business by building services that support school corporation (private and public schools) customers over the long term.

4. Issues to address

The environment in which we operate continues to change. Advanced digital technologies continue to penetrate society, and demand for solutions and services based on digital transformation (DX) and artificial intelligence (AI), which has been rapidly put to practical use in recent years, is increasing in a variety of industries.
The MTI Group will continue to adapt quickly to the ever-changing environment while creating DX services through the use of advanced digital technology, and will work to continuously provide high value-added solutions and services to its customers.

(1) Apply the latest technologies such as AI to high-value-added solutions and services

Generative AI is rapidly penetrating not only the business domain but also society as a whole, with the global market expected to grow 20-fold by 2030. The solutions and services provided by the Group have always aimed to improve visual clarity and usability by reflecting customer feedback through marketing and designing with full consideration of user experience (UX) from the design stage. Currently, we are striving to realize better UI (user interface) and UX through the use of AI. By continuing to integrate increasingly sophisticated AI and related digital technologies into our solutions and services, we will provide greater value to all our customers.

(2) Enhance the development system and strengthen information security

The increased use of technologies that make up DX, such as advanced digital services based on the cloud, AI and other technologies and the development of inter-system collaboration technologies, have changed the system infrastructure that supports industry and all of society. At the same time, needs for security measures required for the systems are increasing.
Therefore, to support the latest technologies and securities, the MTI Group is focusing on strengthening the organization as well as cultivating and employing human resources who possess advanced specialist skills. While actively securing excellent human resources from around the world, we are also working to provide more value-added services.

(3) Develop new customers and create added value by maximizing synergies within the group

In recent years, with the development of technologies to link systems and data, sharing data and authentication across multiple services to improve convenience has become common. We will provide a seamless user experience between related services by leveraging our strength of having numerous touchpoints with users through the comprehensive development of various services within the same business domain. Additionally, we will not limit our efforts to user information integration within the same domain, but will actively work to develop new customers and create added value by combining businesses from entirely different domains. We will also focus on project-based solution and service development to drive these initiatives forward. To maximize synergies within the group, we will continue to challenge ourselves to organically connect and combine multiple businesses and services within the group.

(4) Invest in human resources and promote work style reforms

In order to realize our vision, each and every employee will maximize their individuality and ability to maximize results creation and value creation.
To this end, we are focusing on the early identification and provision of growth opportunities for the next generation of leaders who will be the driving force behind the company. We have begun efforts to enhance the quality of our managers by cultivating a management mindset through dialogue with senior leadership, improving their abilities and skills through external training, and creating opportunities to broaden their perspectives through exchanges with external experts. In addition, through mentoring to deepen self-awareness and understanding of others, we are improving the awareness and people management skills of our management team, thereby promoting a management style that supports each employee in maximizing their individuality and abilities.
In the area of creating a supportive environment, we are working to expand diverse work styles and develop a variety of workplace settings where every employee can find fulfillment in their work. We have introduced telework standards and a super-flex system, enabling employees to work without being constrained by time or location, thereby enhancing productivity and satisfaction. Additionally, we are promoting initiatives to establish an employment environment where all employees, regardless of gender, age, or personal circumstances, can fully demonstrate their individuality and abilities and work with peace of mind. As part of these efforts, we are developing systems tailored to the life stages of employees, such as pregnancy, childbirth, childcare, and caregiving, to support their long-term success in the workplace.