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 invests a portion of the stable earnings from its content business in the healthcare business, since the latter is believe to have high growth potential for the future. We thus foster several businesses that will develop into new sources of stable earnings and we also invest in business areas considered to have high growth potential from a medium- and long-term perspective.
 We will also strive to increase the number of subscribers in new fields amid the rapid growth in the market for smartphone services. Additionally, we will aggressively work to create business opportunities by developing new services targeting smartphones and we will work to realize sustained sales and continuous growth of profits.

 Medium- to long-term management strategies for each contents category are explained below.

1) Suppressing the earnings decline in the content business
Our content business is seeing a decrease in the number of paying subscribers. Meanwhile, we are actively investing part of our stable earnings in the healthcare business where the growth potential is believed to be high. We will endeavor to suppress the decline in paying subscribers and to develop businesses that are expected to grow.
 The expansion of paying subscribers to security-related apps has yet to hit its limit. We will continue our intensive efforts to increase the number. In the business of offering original comics content to comic distributors, we will increase our titles in a bid to achieve business expansion.

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.

4. Issues to address

With the advent of an era of big change in the circumstances surrounding information technologies, digital transformation (DX) has begun. It has resulted from the spread of the Internet of Things (IoT), Artificial Intelligence (AI), the fifth-generation mobile communications system (5G), electronic Know-Your-Customer (eKYC) authentication and other advanced digital technologies to various parts of society. In addition, circumstances remain uncertain amid the COVID-19 pandemic. Needs for digitalization as mentioned above are rapidly mounting.
 The MTI Group swiftly shifted employees to working from home while continuing its business operations. Quickly adapting to ever-changing circumstances, we will work to ensure continued provision of value-added services.

1) Enhancing the development system and increasing data security
The increased use of advanced digital services based on cloud, AI and other technologies and mechanisms such as the collaboration of inter-system APIs (sharing of software functions) have opened the way for complex data linkage between different systems. To ensure that users registering their personal and other information can always use digital services without anxiety, it is necessary to construct a more solid security system. In this situation, we are aware of the significance of strengthening data security by introducing the latest technologies while continuously enhancing the development system with a view to offering a range of digital services.
 The MTI Group is working to secure professionals with advanced technical skills and is designing and operating a management process for swiftly and accurately addressing cyber security threats. With respect to the handling of personal and other information, we actively introduce eKYC, Open Authentication (OAuth) and other cutting-edge technologies in an effort to construct a secure service environment that allows users to enjoy the services without worries.

2) Enhancing marketing capacity
The sophistication of digital technologies led to people across more generations using the Internet. Customers’ needs are constantly changing and diversifying. In 2020, advanced digital services and DX became rapidly widespread in the context of implementing various measures aimed at stopping the spread of COVID-19. We believe that this trend will persist. The MTI Group understands it is important to enhance our marketing structure to accurately catch big data on rapid changes and diversification like these to quickly grasp customers’ needs and to use them for service improvements.
 For this purpose, the MTI Group will strengthen its marketing organizations and structures and develop a work flow for efficient business activities even in the teleworking environment with a view to continuously increasing the marketing capacity that gives us strength.

3) Enhancing UI and UX design for creating outstanding usability
While the widespread use of advanced digital technologies is changing the living environments for many different people, advanced digital services are required to have intuitive usability that helps anyone understand how to use them. In addition, 5G technology has paved the way for the distribution of mixed reality (MR), virtual reality (VR), ultra-high-definition video and image and other services with a more sophisticated design. The MTI Group understands that advanced design in full consideration of the user interface (UI) and user experience (UX) is a very significant factor that encourages customers to choose our services from among a large number of sophisticated services and that it will be of growing importance in the future.
 We have therefore set up an organization that specializes in design and we are endeavoring to develop more capable UI and UX designers. We will improve usability from the standpoint of users to seek design features that will ensure that we continue to be chosen by customers.

4) Building an organization system with agility and flexibility and carrying out the work style reform
We think that quick decision-making and implementation of business strategies under an optimal organization system and working conditions are vital to achieving business expansion while adapting to the rapidly-changing business environment.
 The MTI Group will make comprehensive day-to-day efforts to improve cost control and continuously revise organizations in line with changes in customer needs and business opportunities in a way that is not constrained by the conventional organizational frameworks as we seek to build organizations with agility and flexibility.
 For employees, we will not only provide staff education but also enhance programs for achieving work-life balance and reconsider work styles in the conventional office environment. To stop the spread of COVID-19 infections, we quickly shifted to teleworking as part of the work style reform in accordance with our business continuity plan (BCP). Going forward, we will strive to establish organizations matched with the new lifestyle. We will continuously improve our organization structures and work processes in order to maximize the performance of individual departments and to heighten the production efficiency of the overall group even in the teleworking environment.