Medical Ikkou Group Corporation

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Risk Information

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The Company's operating results and financial position are subject to the following risks.

Legal restrictions

In the management of the dispensing pharmacy that is the main business of the Medical Ikkou group, there are legal restrictions by the drug legislation and Health Insurance Law, etc., and the matters are strictly set down.The main matters are "pharmacy establishment permission" and "insurance pharmacy specification", in addition need to receive permission and specification from all prefectures etc.In addition, there are cases that the use is different in each autonomy, and individual correspondence is necessary. If these statutes are revised, the achievements of a Medical Ikkou group etc. might be affected.

Reform of standard prices of medicines and dispensing fee

The sales by the pharmacy enterprise of a Medical Ikkou group consist of the income concerning medicine, and the income concerning technical fees for dispensing pharmacist. As for the income that lies medicinal, the income that is provided the fixed price by the standard prices of medicines provided by Health Insurance Law, and lies an art of dispensing is similarly provided in the preparation reward point, too.
If the future when standard prices of medicines and the dispensing fee are revised and the point is changed comes, the achievements of a Medical Ikkou group etc. might be affected.

Change factor of sales

Medicine pharmacy enterprise might be affected to the result if the patient who takes medical examination by the change in the climates at medical treatment organization varied in the quantity in order that the examination prescription number of leaves changes.

The security of the pharmacist

When establishing and managing a pharmacy, a duty of arrangement of a pharmacist is imposed upon each store by Pharmaceuticals and Medical Devices Law, and a required pharmacist's number is defined according to the compliance number of sheets of a prescription.Although the Medical Ikkou group has performed reservation of sufficient pharmacist corresponding to the increase in number of shops, when reservation of a pharmacist will not be able to be performed enough from now on, it may affect the pharmacy enterprise of our company.

Compounding of medicines duties

In order to prevent pharmaceutical mistakes, Medical Ikkou group is working on the improvemet of pharmacists' skills and the inspection organization, and we are performing pharmacy business by very careful attention. However if we should be sued because of a pharmaceutical mistake in the future, the achievements of Medical Ikkou Group might be influence for the reason of losing social trust.

Branch shop policy

The increase in number of shops has been planned to contribute to business scale expansion of a pharmacy enterprise greatly, and a Medical Ikkou group is planning continue open shops positively.However, the competition with the other company in the same trade is increasing severity by intensification of the branch competition.Although the Medical Ikkou group has formed the new branch shop policy which thought as important a competition situation and the profit after opening a shop, achievements may be influenced, when opening a shop as planned cannot be performed, or when the sales of the newly established store are less than a plan.

Interest-bearing debt

The Medical Ikkou group is raising a plant and equipment investment fund including the new opening-a-shop fund and mergers and acquisitions fund by the borrowed money from the financial institution mainly.Therefore, the achievements of our company may be influenced depending on future interest rate movement or the increase in interest due.

Personal information management

In management of a pharmacy enterprise, much personal information is held on business and we are managing those information by computer.Medical Ikkou Group established "the personal information protection basics official regulations" that clarifies our basic policy about the personal information protection and "a basic policy about the personal information protection" that clarifies a basic matter about the personal information handling in correspondence with the enforcement of the Personal Information Protection Law of April, 2005. And we pay attention to be sufficient about the protection of personal information and be diligently to leakage prevention.When personal information is revealed by an unexpected criminal act etc., social trust of our company falls, damage liability arises, and the achievements of our company may be influenced.

Influence of consumption tax etc.

As for the sales in a pharmacy enterprise, it is considered by the Consumption Tax Law that most is tax-free sales.hand, it is considered on the Consumption Tax Law that stocking of medical supplies etc. is taxable purchases.Therefore, the majority of the temporary payment consumption tax ,etc. is considered to the outside consumption tax for deduction ,etc. that cannot be counterbalanced to the temporary receiving consumption tax ,etc.The outside consumption tax for deduction etc. is included in purchases of merchandise for the term, and is carrying out expense appropriation as the pharmacy enterprise cost of goods sold.When a consumption tax rate is reformed from now on, the outside consumption tax for deduction etc. increases and the achievements of a pharmaceutical enterprise may be influenced.

About the correspondence to decrease accounts

"Accounting Standard for Impairment of Fixed Assets" was released in August, 2002 by Business Accounting Deliberation Council, and "Guidance for the application of Accounting Standard for Impairment of Fixed assets" was released by Accounting Standards Board on October 31, 2003. therefore, asset-impairment accounting was applied from the front consolidated-financial-accounting fiscal year.By applying asset-impairment accounting, according to the situation of the cash flow obtained from the use situation of property, and property etc., it is adding up decrease loss and the financial condition and business performance of a Medical Ikkou group may be influenced.

About new enterprise

Aiming at the advance to the nursing care service field, the Medical Ikkou group established incorporated company HealthCare Ikkou of the wholly owned subsidiary in October, 2005, and started management of the private nursing home since this consolidated-financial-accounting period.About management of a private nursing home, when less than the number which the tenant planned after performing construction of institutions etc. from now on, the achievements of a Medical Ikkou group may be influenced.

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