SMS Co., Ltd. (2175 TSE Prime Market)
Earnings Presentation for Investors, Q1 FY03/2025
July 26, 2024

© SMS Co., Ltd.

1

Table of Contents© SMS Co., Ltd.

01

Q1 FY03/2025 Consolidated Financial Results

p.3

02

References

p.11

Mission and Strategy

p.12

Appendix

p.76

2

01

Q1 FY03/2025 Consolidated Financial Results© SMS Co., Ltd.

3

Historical Financial Results and FY03/25 GuidanceExpect to achieve growth in both sales and profits for the 21st consecutive year since our establishment.

Trends in net sales and ordinary income
Net Sales(JPY billions)

Ordinary Income

65.7
54.0
45.7

0.1

(0.0)

0.4
1.5
0.8
2.70.4
0.3
0.1
0.0

10.2
7.6 1.5 8.7 1.7 2.0
7.2
5.2 1.2 1.3

15.1
12.0
2.7
2.3

19.1
3.5

26.6
23.1
5.0
4.4

30.8
6.0

35.1
6.4

36.0
6.7

38.9
7.7

8.8

11.0
9.9

(Guidance)© SMS Co., Ltd.

4

FY03/25 Consolidated Financial Results (Q1)
• Sales increased and profits decreased YoY as originally planned due to the intensive hiring of career partners in
April and increased investments in advertising, etc.
• Expect to achieve growth from Q2, as career partners start to contribute to the matching activities and the effects of
the investment gradually materialize.
Q1 FY03/25 [JPY million]© SMS Co., Ltd.

Q1 FY03/24
ActualQ1 FY03/25
ActualYoY
ChangeNet Sales

15,194

17,426+15%

Operating Income

3,729

3,000

(20%)

Ordinary Income

4,609

4,114

(11%)

Net Income

3,389

3,163

(7%)

5

FY03/25 Career Segment (Q1)
• Grew steadily with strong demand for hiring professionals by medical/elderly care business operators.
• Successfully recruited the majority of the full-year career partner hiring target, mainly in April as originally planned.
On the other hand, the temporary burden of onboarding new career partners impacted the operations of existing
career partners, resulting in limited sales growth in Q1 as originally estimated.
• Expect to improve growth rate from Q2, as career partners start to contribute to the matching activities and theeffects of the investment gradually materialize.
Sales, Q1 FY03/25 [JPY million]© SMS Co., Ltd.

Q1 FY03/24
ActualQ1 FY03/25
ActualYoY
ChangeElderly Care Career

4,608

5,526

+20%

Medical Care Career

6,205

6,630

+7%

Total

10,813

12,157+12%

6

FY03/25 Elderly/Disability Care Operators Segment (Kaipoke, Q1)• The number of Kaipoke memberships increased steadily.

– 51,950 service offices (29,900 locations)*1 as of July 1, 2024

– Q1 membership increase: 1,550 service offices (750 locations)• Sales of optional add-ons such as additional tablets and smartphones increased.
• M&A matching business also expanded significantly, contributing to accelerated growth YoY.

Sales, Q1 FY03/25 [JPY million]

Elderly/Disability Care Operators(Kaipoke)© SMS Co., Ltd.

Q1 FY03/24
ActualQ1 FY03/25
ActualYoY
Change

2,277

2,824

+24%

1. # of service offices: the number of elderly care services / welfare services for persons with disabilities provided based on the public insurance scheme# of locations: the number of service office locations
e.g. When an operator provides two types of elderly care services, home care support service and home-visit elderly care, at one specific address, the number of locations is counted as one andthe number of service offices is counted as two. Kaipoke’s subscription fee is charged per membership location. Normally, the number of locations is smaller than the number of service offices.

7

Supplementary Info: M&A Matching Business• Started M＆A matching services to support business succession of elderly care operators in 2019.
• M&A activity has been increasing in recent years driven by the growing needs for‐ Business succession due to business selection and concentration, lack of successors, etc.
‐ Acquisitions to expand market share, enter elderly care business, and secure human resources, etc.
• The expansion of our workforce in FY03/24 is accelerating the revenue growth.

Cumulative status of seller-side consultations

Cumulative status of buyer-side registrations

CAGR+57.4%

CAGR+84.5%FY19© SMS Co., Ltd.

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

8

FY03/25 Overseas Segment (Q1*1)• Medical Platform Business grew steadily with the progress in delivering non-digital services such as on-site events.
• Global Career Business grew steadily driven by the increasing domestic/cross-border introductions of HCPs *2 in the
countries where we have already operated.

Sales, Q1 FY03/25 [JPY million]

Overseas© SMS Co., Ltd.

Q1 FY03/24
ActualQ1 FY03/25
ActualYoY
Change

1,511

1,713

+13%

1. Income statement of MIMS group is consolidated with a three-month delay and the Q1 results are for January to March. (Please refer to p.83)
2. Healthcare professionals

9Topic: Share Repurchase Program
Plan to repurchase shares (up to 2 billion yen / 995,500 shares) in order to enable flexible implementation of capital
policies in response to changes in the business environment.

Overview of Share Repurchase announced on July 26, 2024
Total number of shares to be
repurchased

995,500 shares*1, 2(1.16% of total shares outstanding*3)

Aggregate repurchase price

2 billion yen*1

Repurchase period

From July 29, 2024 to September 30, 2024

Repurchase method

Market purchase based on a discretionary trading agreement

1. Maximum
2. The total number of shares to be repurchased is calculated based on the aggregate repurchase price of 2 billion yen and the closing price (2,009 yen) on July25, 2024, which is one business day before the Board resolution, and the number of shares less than one unit is rounded down.
3. Excluding treasury shares© SMS Co., Ltd.

10

02

References© SMS Co., Ltd.

11

Mission and Strategy© SMS Co., Ltd.

12

Mission© SMS Co., Ltd.

13

Group Mission

We aim to improve people’s quality of life
by providing information infrastructure
for an aging society.

© SMS Co., Ltd.

14

Aging Society
Define our business domains in an aging society as Medical Care, Elderly/Disability Care, Healthcare, and Senior Life.

Healthcare© SMS Co., Ltd.

Medical Care

Elderly/Disability
Care

Senior Life

15

Information Infrastructure
Define information infrastructure as a platform to connect those to whom we provide value: end users such as
patients, the elderly and their families; professionals such as nurses and elderly care workers; and business
operators such as hospitals and elderly/disability care operators.

End users
Patients, the elderly and theirfamilies, etc. who use
services of medical care,elderly/disability care,healthcare, and senior life

© SMS Co., Ltd.

Professionals

Operators

Nurses, elderly care workers,
dietitians, etc. who directly
provide services to end users

Hospitals, elderly/disability
care operators, renovationcompanies, etc. which directly
provide services to end users

16

Business Areas• Set our business areas based on the four domains required for an aging society and the three stakeholders towhom we provide value.
• Build the information infrastructure by developing and nurturing businesses in each business area.

Healthcare

Medical Care

Elderly/Disability
Care

Senior Life

Professionals

Operators

Business Areas

End users© SMS Co., Ltd.

17

Issues in an Aging Society and Our Solutions© SMS Co., Ltd.

18

An Unprecedented Era of Low Birth Rate, Aging and Population Decline• We are facing rapid aging and population decline simultaneously in Japan.
• The aging rate is expected to reach approximately 35% by 2040 when the elderly population approaches its peak.
• The working-age population is declining, and its ratio will drop to nearly 55% by 2040.
Population trends in Japan*1(in millions)

0-14

150

15-64 (working-age)

65- (the elderly)

The working-age populationand its ratio will fall.

68.1%
59.5%

100

28.6%

50%

1950

2000

34.8%

aging rate
37.9%

25%

The elderly populationand its ratio will increase.

17.4%© SMS Co., Ltd.

working-age rate
52.8%

Peak of the elderly
population

50

0

55.1%

75%

2020

2040

1. MIC “Census”, “Population estimates”, National Institute of Population and Social Security Research “2023 Estimated future population of Japan”

2060

0%

19

Three Critical Issues Faced by an Aging Society• We are facing three critical social issues in an aging society with the low birth rate, aging and population decline.
• Need to solve these issues in order to improve people's quality of life in an aging society.

© SMS Co., Ltd.

Issue
1

Difficulty in sustaining high-quality medical care and elderly/disability care services

Issue
2

More severe burden on the working generation

Issue
3

Difficulty in solving problems related to living in an aging society

20Issue 1: Difficulty in sustaining high-quality medical care and elderly/disability careservices
While the demand for medical care and elderly/disability care services is increasing due to the population aging, agrowing shortage of medical care and elderly care professionals is making it difficult to sustain high-quality medicalcare and elderly/disability care services.
Medical care

Expense forecast for
medical care, elderly
care, and otherwelfare services*1

Shortage of nurses*2
Shortage of elderly
care workers*3© SMS Co., Ltd.

1.
2.
3.
4.

Elderly care

Other welfare

14.6

39.2

48.7

2018

2025

68.3

2040

60–270220(in JPY trillions)

24.6

17.6
14.6
10.7

22.5

*4

Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”
MHLW, “Subcommittee on supply and demand of nursing staff, study group on supply and demand of medical care workers”
MHLW, “Required number of elderly care staff based on the 9th plan for long-term care insurance”
Number of shortages as of 2026?

(in thousands)

620
21Issue 2: More severe burden on the working generation
The burden on the working generation will become more serious due to the increasing social security expenses forpensions, medical care, elderly care, and other welfare services, as well as the declining working-age population who
cover these expenses.
Pension

Medical care

Elderly care

Other welfare

121.3
Social security
expenses forecast*1

14.6
10.7

47.4
5.0

39.2

x1.6
140.8
17.6
14.6

188.5
22.5

(in JPY trillions)

24.6
68.3

48.7

18.6
23.8

56.7

59.9

73.2

1990

2018

2025

2040

5.8 ppl2.1 ppl2.0 ppl

1.6 pplWorking generation
per the elderly*2© SMS Co., Ltd.

1. MHLW, “Trends in Social Security Benefits”, Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”
2. MIC “Census”, “Population estimates”, National Institute of Population and Social Security Research “2023 Estimated future population of Japan”

22Issue 3: Difficulty in solving problems related to living in an aging society• While services required in society are changing and expanding with the population aging, information related toliving in an aging society is insufficient in terms of quality and quantity, and the future labor shortage will result in
an inability to adequately supply such services.
• The elderly and their families will have difficulties in solving life-related problems in an aging society.
Rapid growth

1950

Stable growth

1975

Age
compositionofpopulation*1

Low growth

2000

2025

2050
65–

15–64
0–14 years old

Requiredservices© SMS Co., Ltd.

1. MIC “Census”, “Population estimates”, National Institute of Population and Social Security Research “2023 Estimated future population of Japan”

23

Our Solutions for Issues in an Aging Society
Address the social issues in an aging society by establishing specific solutions targeting each social issue andbuilding information infrastructure.

Social issues in an aging society© SMS Co., Ltd.

Our Solutions• Solve labor shortages and uneven distribution of
medical care and elderly/disability care professionals.

Issue
1

Difficulty in sustaining highquality medical care andelderly/disability care services

Issue
2

More severe burden on theworking generation• Increase the number of healthy people in the workforce.

Issue
3

Difficulty in solving problems
related to living in an aging
society• Provide a variety of options and high-quality decisionmaking information.

• Improve the management of medical care andelderly/disability care operators.

24

Strategic Business Areas
Aim to solve the three critical issues in an aging society by defining our strategic business areas as Career,
Elderly/Disability Care Operators, Healthcare, and Senior Life, and by strategically developing and nurturing businesses
to address the issues.

Healthcare

Professionals

Operators

Medical Care

Issue
1
Issue
2
Healthcare
Business

Elderly/Disability
Care

CareerBusiness

Issue
1
Elderly/Disability
Care Operators
Business

Senior Life

Issue
3
Senior Life
Business

End users© SMS Co., Ltd.

25

Realization of the Group Mission
Contribute to improving people's quality of life in an aging society by building information infrastructure andproviding value to end users, professionals, and operators.

End users
Professionals
Professionals can:• choose the best workplace fromvarious options;• improve their skills and knowledge
through education and training; and• build better careers.
As a result, they can enjoy their workand provide quality services to end
users.

© SMS Co., Ltd.

End users can:• continuously enjoy high-quality
medical care and elderly/disability
care services and live with peaceof mind;• live and work healthier for a longer
period of time;• solve problems relating to daily
life; and• make decisions on their own
initiative about their lives andachieve better lifestyles.

Operators
Operators can:• hire good staff members who work
productively over the long term; and• focus on caring for the elderly andpatients by improving theiroperational efficiency andmanagement.
As a result, they can provide quality
services to end users through skilled
staff members and good management.

26

Growth Track© SMS Co., Ltd.

27

Location• Started our business in Japan in 2003 and have accelerated our overseas expansion since the acquisition of MIMS
group in 2015.
• Have offices in 18 countries and regions, mainly in Japan and APAC.

Japan
South Korea
China
Hong Kong
TaiwanSingapore
Malaysia
Indonesia
Thailand© SMS Co., Ltd.

VietnamPhilippines
Myanmar
India
Australia
New Zealand
UAE
IrelandGermany

28

Business Portfolio• Medical Care Career has been driving our growth since our establishment.
• Elderly Care Career, Kaipoke and Overseas business are growing as the new pillars of our business portfolio.
Business Areas

Breakdown of Net Sales(in JPY billions)

Career Business – Medical Care Career

54.0
2.8

5%

• Recruiting service for medical care professionals

9.0

17%

9.8

18%

16.3

30%

16.1

30%

Career Business – Elderly Care Career• Recruiting service for elderly/disability care professionals
Elderly/Disability Care Operators Business (Kaipoke)• Management support platform for elderly/disability care
operators
Overseas Business• Marketing support service for medical-related companies• Clinical decision support• Domestic/cross-border recruiting service of HCPs*1

2.1

17%

8.1

67%

New Business• Developing new businesses mainly in Healthcare andSenior Life domains© SMS Co., Ltd.

Others 16%

12.0

1. Healthcare professionals

FY03/14
Medical Care Career
Overseas Business

30.8
1.0
5.5

18%

3.9

13%

8.0

26%

12.4

40%

3%

FY03/19
Elderly Care Career
New Business

FY03/24
Kaipoke29

Growth Scenario• On top of the solid expansion of Career Business, we accelerate the growth of Kaipoke and Overseas Business.
• Actively develop new businesses, mainly in healthcare and senior life domains, to create next pillars of ourbusinesses, which will further drive our long-term growth.

Growth of New
Business
Growth of Overseas
Business
Growth of Kaipoke
Growth of Elderly
Care Career
Growth of Medical
Care Career

Current© SMS Co., Ltd.

Future30

Career Strategy© SMS Co., Ltd.

31

Issue 1: Difficulty in sustaining high-quality medical care and elderly/disability careservices (Repost)
While the demand for medical care and elderly/disability care services is increasing due to the population aging, agrowing shortage of medical care and elderly care professionals is making it difficult to sustain high-quality medicalcare and elderly/disability care services.
Medical care

Expense forecast for
medical care, elderly
care, and otherwelfare services*1

Shortage of nurses*2
Shortage of elderly
care workers*3© SMS Co., Ltd.

1.
2.
3.
4.

Elderly care

Other welfare

14.6

39.2

48.7

2018

2025

68.3

2040

60–270220(in JPY trillions)

24.6

17.6
14.6
10.7

22.5

*4

Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”
MHLW, “Subcommittee on supply and demand of nursing staff, study group on supply and demand of medical care workers”
MHLW, “Required number of elderly care staff based on the 9th plan for long-term care insurance”
Number of shortages as of 2026?

(in thousands)

620
32

Solution for Issue 1 in Career BusinessContribute to solving the social issue “difficulty in sustaining high -quality medical care and elderly/disability careservices” by solving labor shortages and uneven workforce distribution through optimized matching of professionals
and operators.

Healthcare

Medical Care

Professionals

Operators

Issue
1
Issue
2
Healthcare
Business

End users© SMS Co., Ltd.

Elderly/Disability
Care

CareerBusiness

Senior Life

Issue
1
Elderly/Disability
Care Operators
Business

Issue
3
Senior Life
Business

Issue: Difficulty in sustaining high-quality medical careand elderly/disability care services
Solution: Solve labor shortages and uneven distributionof medical care and elderly/disability care professionals
33

Shortage of Professionals• Labor shortage continues to be a serious issue despite the increasing numbers of nurses and elderly care workers.
• The labor shortage of care workers is particularly severe, with a projected shortage of 620,000 professionals in
2040.
Number of nurses / their turnover rate*1

Demand: 1.88–2.02(in millions)

Number of care workers / their turnover rate*2(in millions)Shortage: 0.06–0.27
1.50

1.54

1.57

1.60

1.63

1.66

1.66

1.68

1.68

1.73

2012

2013

2014

2015

1.75–1.82
1.51 1.63

2016

2017

2018

2019

2020

2.11 2.12 2.15 2.15

20252011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Jobs-to-applicants ratio of care workers*3

5.0

5.0

4.0

4.0

1.0

Nurses2.18 2.11

0.02012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

2026 2040

Care workers

3.0
2.0

All job types

0.62

17.0% 17.8% 16.1% 17.0%16.6%16.5%16.5%16.7% 16.2% 14.9% 14.3%14.4%

2.0© SMS Co., Ltd.

1.71

1.95 2.03
1.77 1.84 1.9

Jobs-to-applicants ratio of nurses*3

3.0

2.72

Shortage: 0.22

10.9% 11.0% 11.0% 10.8% 10.9% 10.9% 10.9% 10.7% 11.5% 10.6%

2011

Demand: 2.40

All job types

1.0
0.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

1. Number of nurses/their turnover rate: Japanese Nursing Association “Nursing Statistics”, Forecasted number of nurses in 2025: MHLW, “Subcommittee on supply and demand of nursing staff,
study group on supply and demand of medical care workers”
2. Number of elderly care workers: MHLW, “Required number of elderly care staff based on the 9th plan for long-term care insurance”, Turnover rate: Care Work Foundation "Care Work Survey"
3. MHLW, "Employment referrals for general workers”

34Mission of Career BusinessWe aim to contribute to sustaining high-quality medicalcare and elderly/disability care services by solving
labor shortages and uneven workforce distribution.

© SMS Co., Ltd.

35

Strategy of Medical Care Career• Provide various supports for professionals in pursuing their ideal careers throughout their professional lives,
including supports in: finding/changing jobs, returning to work, and developing their careers.
• Promote optimal matching between professionals and operators in order to solve uneven workforce distribution
among medical functions and regions.
Medical care
professionals
Students

Operators
Careerinformation/
opportunities

Support for
HR issues

Large hospitals

Professionals

Job fairRegional core
hospitals

Potential workers

Recruiting agent

Clinics

Recruiting ads

Home-visit nursing

Careerissues/needs© SMS Co., Ltd.

Community

Professionals’
information

HR issues/
needs

Solving unevenworkforce distribution
among medical
functions/ regions

Elderly carefacilities

Operators’
information

36

Strategy of Elderly Care Career• Promote new entry from outside the industry through helping new entrants obtain a qualification and find a good
job at a good operator.
• Prevent turnover to outside the industry through enhancing working environments of operators and optimizing
matching between professionals and operators.

Promotenew entry

Elderly care
professionals
Without experience

Prevent
fromleaving theindustry

Recruiting agent

Support for
HR issues

Elderly carefacilities

Without certification

Recruiting ads

Home-visit elderly
care

Professionals

SchoolDay carePotential workers

Professionals’
information© SMS Co., Ltd.

Careerinformation/
opportunities

Operators

Careerissues/needs

Retention

HR issues/
needs

OthersOperators’
information

37

Growth Scenario• The Career Segment has huge growth opportunities.
• In addition to the market share expansion of existing services such as RAG*1 for nurses, services for elderly care
workers with serious labor shortages and services for newly-covered occupations such as childcare workers drive
the growth.
Sales of Medical Care Career: JPY 16.1 billion*3*4: Sales for FY03/24

Sales of Elderly Care Career: JPY 16.3 billion*4: Estimates of the future sales

RAG for childcare
workers

RAG for care workers

School

RAG for other co-medicals

RAD for care workers

RAG for nurses
RAG/RAD for Judo therapists etc.
RAD*2 for newlygraduated nurses
RAG for PT/OT/ST© SMS Co., Ltd.

1.
2.
3.
4.

RAG: Recruiting Agent service
RAD: Recruiting Ads service
Career businesses for doctors and pharmacists are operated by M3 Career, Inc., a JV between M3, Inc.(51%) and SMS (49%).
Sales for FY03/24

RAG for care managers

38

Elderly/Disability Care Operators (Kaipoke)
Strategy© SMS Co., Ltd.

39

Issue 1: Difficulty in sustaining high-quality medical care and elderly/disability careservices (Repost)
While the demand for medical care and elderly/disability care services is increasing due to the population aging, agrowing shortage of medical care and elderly care professionals is making it difficult to sustain high-quality medicalcare and elderly/disability care services.
Medical care

Expense forecast for
medical care, elderly
care, and otherwelfare services*1

Shortage of nurses*2
Shortage of elderly
care workers*3© SMS Co., Ltd.

1.
2.
3.
4.

Elderly care

Other welfare

14.6

39.2

48.7

2018

2025

68.3

2040

60–270220(in JPY trillions)

24.6

17.6
14.6
10.7

22.5

*4

Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”
MHLW, “Subcommittee on supply and demand of nursing staff, study group on supply and demand of medical care workers”
MHLW, “Required number of elderly care staff based on the 9th plan for long-term care insurance”
Number of shortages as of 2026?

(in thousands)

620
40

Solution for Issue 1 in Elderly/Disability Care Operators BusinessContribute to solving the social issue “difficulty in sustaining high -quality medical care and elderly/disability careservices” by improving the management of elderly/disability care operators through a management support platform“Kaipoke”.

Healthcare

Professionals

Operators

Issue
1
Issue
2
Healthcare
Business

End users© SMS Co., Ltd.

Medical Care

Elderly/Disability
Care

CareerBusiness

Issue
1
Elderly/Disability
Care Operators
Business

Senior Life

Issue
3
Senior Life
Business

Issue: Difficulty in sustaining high-quality
medical care and elderly/disability care services
Solution: Improve the management ofelderly/disability care operators
41

Business Environment of Elderly Care Services
As the population ages, the number of elderly care operators continues to increase, amounting to
260,000 offices.
Number of people certified for long-termcare/support need*1

Number of elderly care service offices*2

Average annual rate of increase: 2.3%

Average annual rate of increase: 3.3%

(in thousands)(in thousands)

5,611

5,838

6,058

6,204

6,320

6,413

6,582

6,686

6,818

6,896

186
43

2012

2013

2014

2015

2016

2017

2018

2019

Requiring long-term care
Requiring support

2020

2021

199
46

210
48

143

153

162

2012

2013

2014

223
51

232
53

239

244

248

251

254

258

54

55

56

57

57

58

172

179

186

189

192

194

197

200

2015

2016

2017

2018

2019

2020

2021

2022

Operators that Kaipoke targets*3
Operators that Kaipoke does not target*3

1. MHLW, "Report on Long-Term Care Insurance"
2. MHLW, "Statistics of Long-term Care Benefit Expenditures” (March of each year)
3. Kaipoke targets in-home services such as in-home care support, home-visit elderly care, day care, home-visit nursing, and outpatient rehabilitation, etc., and does not target facility services
such as commuting care for elderly with dementia, short stay, daily life care for elderly in specific facilities, and small-sized multifunctional inhome care, etc.
© SMS Co., Ltd.

42

Business Environment of Elderly Care Services• Approximately 80% of elderly care operators are small corporations with fewer than 50 employees.
• It is difficult for these operators to focus on the care for the elderly due to various operational/management issues
such as numerous indirect tasks, including document preparation, insufficient manpower, low purchasing power,
and cash-flow issues.
Size of elderly care operators*1
300–499 500–
0.5%
100–299 0.9%
7.5%
50–99
8.7%

Approx.
80%

1–49 employees
82.4%© SMS Co., Ltd.

1. Survey by SMS

43

Business Environment of Disability Welfare Services
The number of users of welfare services for persons with disabilities is on the rise due to better understanding of
disabilities and easier access to diagnosis, and the number of service offices is continuously increasing.
Number of users of welfare services for persons withdisabilities and for children with disabilities(average per month)*1

Number of welfare service offices for persons
with disabilities*2(in thousands)(in thousands)

Average annual rate of increase: 7.3%

Average annual rate of increase: 6.9%

748

815

881

949

1,020

1,092

1,163

1,229

1,277

1,363

71
43

2012

2013

2014

2015

2016

2017

2018

2019

2020

Welfare service for children with disabilities

Welfare service for persons with disabilities

2021

80
50

96

86

59

54

103

63

28

30

32

37

40

2012

2013

2014

2015

2016

110

67

116

70

123

75

43

46

48

2017

2018

2019

127

69

135

73

144

78

59

62

67

2020

2021

2022

Operators that Kaipoke targets*3*4
Operators that Kaipoke does not target*3*4

1. MHLW, "Statistical Information on Welfare for Persons with Disabilities: Status of Use of Welfare Services for Persons with Disabilities, etc."
2. MHLW, "Statistical Information on Welfare for Persons with Disabilities: Status of Use of Welfare Services for Persons with Disabilities, etc.", "Recent Trends in the Field of Welfare for Persons
with Disabilities"
3. Kaipoke targets child development support, after-school day services, in-home nursing care, visiting care for persons with severe disabilities, companion support, and activity support.
Employment transition support and employment continuation support (Type A/B) are targeted by the user attraction support service, but are counted as not targeted by Kaipoke.
4. For companion support and activity support are targeted by Kaipoke, but the number of individual offices is unknown prior to FY 2019, so they are not targeted until 2019 and are counted astargeted starting in 2020.
© SMS Co., Ltd.

44

Mission of Elderly/Disability Care Operators Business (Kaipoke)

We aim to contribute to sustaining high-quality
elderly/disability care services
by improving the management and the service
quality of elderly/disability care operators.

© SMS Co., Ltd.

45

Management Support Platform• Kaipoke is a management support platform provided in the form of SaaS, which realizes one-stop support for the
management of elderly/disability care operators.
• Offer more than 40 services that support operations, recruitment, purchasing, finance, sales, M&A (Businesssuccession), etc., on top of the insurance claim service that is essential for elderly/disability care operations.
Management support platform
Service providers

Operators
Insurance claim

In-home care support

Business support
Partner A
Partner B
Partner C

Day careRecruitment

Home-visit elderly care

Purchasing
Servicedevelopment/provision

Finance
Sales support

Management
SupportOutpatient rehabilitation

Business succession+α+α© SMS Co., Ltd.

Servicedevelopment/
improvement

Home-visit nursing

Elderly/disability caremanagement data

Accumulationof information

46

Strategy of Kaipoke
Maximize the value as a management support platform by No. 1 – 5 below.

4

Penetration by customer success＋α5Business succession

Analyze andleverage the data
accumulated

Sales
Finance
Purchasing
Recruitment
Operation
Insurance claim

2

3Development ofservices needed for
management© SMS Co., Ltd.

Increase the number of customers

In-home care
support1

Day careHome-visit
elderly careHome-visit
nursing

Outpatient
rehabilitation＋αExpand operator coverage

47

New Business (Healthcare) Strategy© SMS Co., Ltd.

48

Issue 2: More severe burden on the working generation (Repost)
The burden on the working generation will become more serious due to the increasing social security expenses forpensions, medical care, elderly care, and other welfare services, as well as the declining working-age population who
cover these expenses.
Pension

Medical care

Elderly care

Other welfare

121.3
Social security
expenses forecast*1

14.6
10.7

47.4
5.0

39.2

x1.6
140.8
17.6
14.6

188.5
22.5

(in JPY trillions)

24.6
68.3

48.7

18.6
23.8

56.7

59.9

73.2

1990

2018

2025

2040

5.8 ppl2.1 ppl2.0 ppl

1.6 pplWorking generation
per the elderly*2© SMS Co., Ltd.

1. MHLW, “Trends in Social Security Benefits”, Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”
2. MIC “Census”, “Population estimates”, National Institute of Population and Social Security Research “2023 Estimated future population of Japan”

49Solution for Issue 2 in Healthcare BusinessContribute to solving the social issue “more severe burden on the working generation” by increasing the number ofhealthy people in the work force through a platform that supports “health and productivity management” of companies.

Healthcare

Professionals

Operators

Issue
1
Issue
2
Healthcare
Business

End users© SMS Co., Ltd.

Medical Care

Elderly/Disability
Care

CareerBusiness

Issue
1
Elderly/Disability
Care Operators
Business

Issue: More severe burden on theworking generation
Solution: Increase the number ofhealthy people in the work force

Senior Life

Issue
3
Senior Life
Business50

Declining QOL*1 and Productivity Caused by Physical/Mental Disorders• Among the working generation, there are many patients/potential patients with life-style related diseases, which
often progress to critical illnesses such as diabetes.
• Mental disorders caused by overworking or workplace stress are increasing in recent years.
• The government encourages “health and productivity management,” in which companies work to improve thehealth of employees and their families.

Physical disorder
Risk of lifestyle-relateddiseases

Lifestyle-relateddiseases

Number of recipients ofspecific health guidance*2

Number of diabetics*3

Approx. 5.12 million

Approx. 5.79 million

Mental disorder

Number of patientswith mood disorders*3
Approx. 1.72 million

Number of
hypertensive patients*3
Approx. 15.11 million© SMS Co., Ltd.

1. Quality of life
2. Subjects are 40 – 74 years old. MHLW, "2022 Implementation of specified health checkups and specific health guidance"
3. MHLW, "2020 Patient survey"

51

Mission of Healthcare BusinessWe aim to contribute to improving QOL*1 andincreasing the number of healthy people in thework force by preventing and treating lifestylerelated diseases and mental disorders.

© SMS Co., Ltd.

1. Quality of life52

Health and Productivity Management Support Platform• Provide digital health services*1 for companies and health insurance associations.
• The services are based on scientific evidences and provided by seasoned healthcare professionals (HCPs)
including doctors, nurses, and dieticians.
Health and Productivity Management Support Platform
HCPs`

DoctorSpecific healthguidance

Nurse

Aggravation prevention

Dietitian

Quit-smoking program+αCompanies/
Health insurance
association

Employee
Union member`

Serviceprovision

Industrial healthPrevention /Improvement

Family+αServicedevelopment/
improvement© SMS Co., Ltd.

Health Data

Accumulationof information

1. Digital Health: Improving the effects of medical care and healthcare by utilizing the latest digital health technologies such as AI, ICT, IoT, wearable devices, and big data analysis.

53

Remote Health Guidance Service• Provide specific health guidance service for HIAs*1 aiming to prevent lifestyle-related diseases of employees andtheir families. The service is provided by registered dieticians and based on the results of verification projects
conducted with MHLW.
• Remote ​service using smartphones enables frequent and continuous intervention.
Health insurance
association
Prevent lifestylerelated diseasesof the insured

Recipients of
guidance

Registereddietitians
Consultation

Recruitment from ourRAG*2 for dietitians/
online dietitiancommunity

Chat /My Data

Health Data

Effective guidance
method based on
the data analysis

Medicalspecialists

Blood test / Number of steps andactivity / Body weight and bloodpressure / Meal image / Inquiry andquestionnaire / Chat data

© SMS Co., Ltd.

1. Health insurance association
2. Recruiting Agent service

54Remote Industrial Health Service• Provide comprehensive support for industrial health operations in the human resources and labor departments ofcompanies, including visits by industrial physicians, stress checks, and the establishment and operation of healthcommittees.
• Reduce the workload of HR and realize effective mental care through the service provided by the two-person
system of an industrial physician and an industrial nurse.
Client• Enhance employees’
Health• Develop industrial
health system

Employees

Industrial
nursesOnline interview

Recruitment from ourRAG*1 for nurse/ online
nurse community

Operation support
Healthcommittee
Stress check

InterviewsettingIndustrial
physicians

Recording
Visits and workplacemonitoring© SMS Co., Ltd.

1. Recruiting Agent Service

55

Our Strength
Leveraging our strengths in healthcare professional (HCP) networks, ICT capabilities, and proven results fromverification projects conducted with ministries and national agencies, we offer effective solutions with a reasonable
price for prevention of lifestyle-related diseases and mental disorders.

HCP Networks• Enable us to recruitskilled HCPs essential
for healthcare services.

Effective and affordable solutions for prevention oflifestyle-related diseases and mental disorders
ICT Capabilities• Enable us to provide
inexpensive and efficient
services using ICT.

© SMS Co., Ltd.

1. Joint project with MHLW, METI, and national hospitals

Results from
Verification Projects*1• Enable us to provide
services with proveneffectiveness.

56

Strategy of Healthcare BusinessMaximize the value as a health and productivity management support platform by No. 1 – 5 below.

4＋αImprove services by recruiting and training HCPs
5

Support for employees
caring for families

Analyze and leverage
the health data
accumulated

Health consultation
Stress check
Industrial health
Promotion totake med-checkups
Quit-smoking
program
Aggravation
prevention of diabetes
Health guidance2

3
Develop digital healthservices for health andproductivity management© SMS Co., Ltd.

Increase the number of clients/users

Health insurance
association

1

Small and medium
sized companies

Hospital

Elderly care
operator＋αExpand industry/business type coverage

57

New Business (Senior Life) Strategy© SMS Co., Ltd.

58

Issue 3: Difficulty in solving problems related to living in an aging society(Repost)• While services required in society are changing and expanding with the population aging, information related toliving in an aging society is insufficient in terms of quality and quantity, and the future labor shortage will result in
an inability to adequately supply such services.
• The elderly and their families will have difficulties in solving life-related problems in an aging society.
Rapid growth

1950

Stable growth

1975

Age
compositionofpopulation*1

Low growth

2000

2025

2050
65–

15–64
0–14 years old

Requiredservices© SMS Co., Ltd.

1. MIC “Census”, “Population estimates”, National Institute of Population and Social Security Research “2023 Estimated future population of Japan”

59Solution for Issue 3 in Senior Life BusinessContribute to solving the social issue “difficulty in solving problems related to living in an aging society” bydeveloping a platform that connects people who have some worries or problems in their lives, with advisors andsolution services.

Healthcare

Professionals

Operators

Issue
1
Issue
2
Healthcare
Business

End users© SMS Co., Ltd.

Medical Care

Elderly/Disability
Care

CareerBusiness

Issue
1
Elderly/Disability
Care Operators
Business

Issue: Difficulty in solving problems related
to living in an aging society
Solution: Provide a variety of options andhigh-quality decision-making information.

Senior Life

Issue
3
Senior Life
Business

60

Mission of Senior Life BusinessWe aim to contribute to improving people’s lives
by offering a wide range of options andinformation related to living in an aging society.

© SMS Co., Ltd.

61

Problem-Solving Platform• Help to solve a variety of problems, mainly related to elderly care, through communication among those who have
similar problems and advice from professionals.
• Introduce service providers to solve problems related to specific categories such as housing, food, and end-of-lifeplanning.
The elderly
and families

Serviceproviders

Problem-Solving Platform

Answer /adviceInformation
gathering/consultation

Elderlycare

Housing
Food

Customer
introduction

End-of-lifeplanning＋αBusiness
Introduction© SMS Co., Ltd.

Service delivery
62

Strategy of Senior Life BusinessMaximize the value as a problem-solving platform by No. 1 – 4 below.

Variety of problems mainly
related to elderly care1

Problems related to specific areas

Increase the value as acomprehensive consultation
desk for elderly care

4

The elderly andfamilies

3

Professionals

Elderly care

© SMS Co., Ltd.

Increase the number of service providers
+α

+α

+α

+α

+α

ProviderProviderProviderProviderProviderProviderProviderProviderProviderProviderRenovation

Care facility
introduction

Elderly meal

Funeral＋α

Housing2

Support to improve managementof service providers

Food

End-of-life planning＋α

Expand category coverage
63

Overseas Strategy© SMS Co., Ltd.

64

Overview of Overseas Segment• Define two strategic business areas in the segment:– Medical Platform Business, operated mainly in MIMS group, which we acquired in 2015, and– Global Career Business, which supports recruitment of HCPs*1 around the world.

Overseas Segment

Overseas Business Structure

MedicalPlatformBusiness

Medical Marketing

Marketing support service for medical-related companies*2

Clinical Decision
SupportPrescription error check service, etc. for healthcare
institutions such as hospitals

Global Career Business© SMS Co., Ltd.

Domestic/cross-border recruiting service of HCPs

1. Healthcare professionals
2. Operators such as pharmaceutical companies, medical device manufacturers, healthcare service operators, and industrial group.

65Medical Platform Business© SMS Co., Ltd.

66

Issue: Low Availability of Medicines and Medical Devices, andInadequate Quality of Medical Care in APAC
• Health expenditure per economic scale in APAC is less than in developed countries.
• Medical-related companies face high entry barriers, as the medical systems, regulations, languages, cultures, andsocial customs are different by country.
• This results in the social issue of low availability of medicines/medical devices and inadequate quality of medical
care.
Health Expenditure to GDP*1
17.4%© SMS Co., Ltd.

1. WHO “Global Health Expenditure Database” (2021)

5.6%

5.4%

5.2%

4.6%

4.4%

3.7%

3.3%

Thailand

Vietnam

Malaysia

Indonesia

India

5.6%

China

Philippines

Japan

U.K.

U.S.

5.9%

Singapore

10.8%

Myanmar12.4%

67

Mission of Medical Platform BusinessWe aim to contribute to realizing healthy and highquality lives by improving the availability andsafety of medical care in APAC.

© SMS Co., Ltd.

68

Medical Platform• Support the marketing activities of medical-related companies by using our membership base of healthcare
professionals (HCPs) in APAC.
• Expand our membership base of HCPs and enhance their engagement by providing localized valuable information,
thereby making marketing activities of medical-related companies more effective and efficient.
Medical Platform
Medical-relatedcompanies
Pharmaceuticalcompany
Medical device
manufacturer

HCPs
Information sharing
including issues/needs
regarding marketing

Other healthcare
manufacturer
Industry association(doctor/academy)
Government agency+αSolution/support
for marketing issues

Symposium/ Seminar
Academic paper

Localized valuable
information

DoctorDentistOnline CME*1

Pharmacist

Medical care news

Nurse

Clinical guideline

Student

Drug information＋αService development
and improvement

Expansion ofmembership base/enhancement ofengagement＋αAccumulationof information

Data of employees,
products, and patients© SMS Co., Ltd.

1. CME stands for continuing medical education

69

Strategy of Medical Platform BusinessMaximize the value as a medical platform by No. 1 – 5 below.

4

Engage healthcare professionals
5＋αSymposium/Seminar

Analyze andleverage theinformation
accumulated

Academic paper
Online CME
Medical care news
Clinical guideline
Drug information

2

3
Expand types of
information to provide/
improve quality andquantity of the information© SMS Co., Ltd.

Increase the number of clients

Pharmaceuticalcompany

1

Medical device
manufacturer

Other healthcare
manufacturer

Industry
association

Government
agency＋αExpand industry/business type coverage

70Global Career Business© SMS Co., Ltd.

71

Issue: Global Shortage and Uneven Distribution of Healthcare Professionals• While the situation surrounding medical care services differs greatly among countries and regions, the demand for
medical care is continuously increasing around the world due to economic growth and population aging.
• The shortage and uneven distribution of healthcare professionals has become an issue in many countries due tothe increasing demand for medical care.
Health Expenditure*1

Expected Shortage of Nurses*2(in USD trillions)(in thousands)

10.0

Japan

60 – 270(2025)

Germany390(2035)

5.0

Australia

120(2030)

2.5

South Korea

160(2030)

0.0

Saudi Arabia

100(2030)

7.5© SMS Co., Ltd.

2000

2005

2010

2015

2020

1. WHO “Global Health Expenditure Database” (FX rates: 2021)
2. Japan: MHLW, “Subcommittee on supply and demand of nursing staff, study group on supply and demand of medical care workers”, Germany: PwC "Fachkräftemangel imGesundheitswesen:Wenn die Pflege selbst zum Pflegefall wird",Australia: Department of Health and Aged Care "Australia’s Future Health Workforce – Nurses Overview Report",South Korea:
Korea Institute for Health and Social Affairs "2017 mid- to long-term supply and demand outlook for major health and medical personnel", Saudi Arabia: Nourah Alsadaan, Linda K. Jones,
Amanda Kimpton and Cliff DaCosta "Challenges Facing the Nursing Profession in Saudi Arabia:An Integrative Review"72Mission of Global Career BusinessWe aim to contribute to improving the quality of
medical care around the world
by solving the shortage and uneven distributionof healthcare professionals.

© SMS Co., Ltd.

73

HCP*1 Supply Platform
Promote optimal cross-border and domestic matching according to the supply of HCPs and the demand fromhealthcare institutions*2.
HCP Supply Platform
Healthcare
Institutions

HCPs
U.K.

U.K.

Singapore

Germany

Malaysia

Ireland

South Korea

New Zealand

Malta

China

UAE

Australia

U.S.

Malaysia

New ZealandIreland
Australia

Philippines
India
South Korea

Cross-bordermatching

Domestic
matching

Saudi Arabia
UAE
Qatar

China

© SMS Co., Ltd.

1. Healthcare professionals
2. Hospitals, clinics etc.

74Strategy of Global Career BusinessMaximize the value as a HCP supply platform by No. 1 – 5 below.

HCP Supply Platform
Healthcare
Institutions

HCPs
U.K.

Singapore1

2

IrelandGermany

Malaysia

Australia

Ireland

South Korea

Malta

China

Australia

U.S.

Increase Number of Clients

New Zealand
UAE
Malaysia

Optimizing/
increasing matching
5

Philippines
India
South Korea
China© SMS Co., Ltd.

Cross-bordermatching

Expand Countries

Increase Number of HCPs

3

Expand Countries

4

U.K.

New Zealand
Saudi Arabia

Domestic
matching

UAE
Qatar

75

Appendix© SMS Co., Ltd.

76

Business Model of Career BusinessBusiness model of Recruiting Agent
Receive a certain percentage of an annual salary from a hiring business operator as a fee when an applicant joins it.
Professionals

Attracting job seekers

Sales activity

Operators

WebsiteRegistration

Job orders

Matching

Matching

Care Nurses
workers

Career partner

Fee

Hospitals Elderly care
operators

Business model of Recruiting Ads
Receive a fee for each application or each hiring via our Recruiting Ads website.
Professionals

Attracting job seekers

Sales activity

Operators

WebsiteRegistration
Care workers© SMS Co., Ltd.

Recruiting ads

Application
Fee

Elderly care
operators
77

Kaipoke’s Main Services
Subscription-based management support platform providing more than 40 services as a package*1
Insurance
Claim• Elderly care operators can claim for the reimbursement of insurance efficiently.

Recruitment• Provide SMS’s industry-leading Recruiting Ads service “Kaigo Job” for free and a job ad
creation agency service.

Sales Support© SMS Co., Ltd.

• Assist sales activities by supporting research, planning, and managing actions.
• Offer a function to create a website for free by automatically linking with registered data.

Operation
Improvement• Provide one iPad for free to enable care workers to complete documentations at theircustomer sites.

Opening
Support• Support procedures needed to open an elderly care business such as application for
designation, financing, finding office properties and market research.

Finance• Provide factoring services to improve operators’ cash flows.

Purchasing• Elderly care operators can procure various equipment and supplies, such as rental
smartphones, in an easy and inexpensive way.

Business
Succession• Supporting the succession of elderly care operators

1. Additional payments are required for the use of two or more iPads, factoring, etc.

78

MIMS Group Profile
MIMS group global coverage

1. As of December 2023
© SMS Co., Ltd.

MIMS group profile
Founded

1963

Business• Medical Platform• Global Career

Globalcoverage

18 countries and regions,mainly in APAC

Number ofmemberships

3.50 million*1

Acquisition
date

October 7, 201579

Business Model of Medical Marketing
Support marketing activities of medical-related companies*1

Medical-relatedcompanies*1

HCPs *2
Fee

Medical/healthcare
information via
various channels

Optimized marketing
solutionsPublication, web,event etc.

© SMS Co., Ltd.

1. Operators such as pharmaceutical companies, medical device manufacturers, healthcare service operators, and industrial group
2. Healthcare professionals such as doctors, nurses, and pharmacists

80Business Model of Clinical Decision Support
Provide a drug database for prescription error checks in healthcare institutions

Healthcare
institutions
Fee

Hospitals

Clinics• Drug database
Pharmacies© SMS Co., Ltd.

• Database can be integrated into coresystems of healthcare institutions

81

Expansion of the Global Career BusinessStarting with the acquisition of NURSCAPE in South Korea in 2011, we have expanded our overseas bases steadily to
Malaysia in 2017, to the Philippines in 2018, to Europe and Oceania in 2019, and to Germany in 2022.
Sep.
2011
Jun.
2017
May
2018

Aug.
2019

South Korea

Malaysia

the Philippines

IrelandAcquired
NURSCAPE
Acquired
MELORITA

Acquired
MSR

Acquired
CCM

Australia

Dec.
2022

© SMS Co., Ltd.

Germany

Acquired
CWC/CF

Launched the Global Career Business.
• Started career-related business for nurses in South Korea
Launched cross-border matching.
• Started cross-border introduction of Malaysian healthcare
professionals(HCPs) to hospitals in the middle east and other countries.
Increased the number of countries from which nurses are introduced.
• Started introduction of Filipino HCPs to hospitals in the middle east andother countries.
Expanded business to Europe and Oceania.
• Started matching for European/Oceanian healthcare professionals.
• Expanded client hospitals in Europe/Oceania for HCPs from Southeast
Asia and other countries.
Expanded business to Germany.
• Started cross-border introduction of foreign nurses to healthcare
institutions and elderly care operators in Germany.
82

Consolidation of MIMS Group Financial Results
Income statement of MIMS group is consolidated to income statement of SMS following a time lag of three months.

Jan. – Mar.

Consolidated

MIMS Group© SMS Co., Ltd.

Q1

Apr. – Jun.

Jul. – Sep.

Oct. – Dec.

Jan. – Mar.

Q1

Q2

Q3

Q4

Q2

Q3

Q4

83

Business Portfolio*1 – Career*2
Segment

Elderly Care
CareerCategory
Services for care
workers

OthersServices
RAD*3 for care workers

RAG*3 for care workers

RAG*3 for PT/OT/ST

RAG*3 for care managers

RAG*3 for nurses

RAG*3 for radiological
technologists

RAG*3 for
Judo therapists etc.

RAG*3 for dietitians

Elderly carecertification course

Certification course
information

RAG*3 for medical
technologists

RAG*3 for clinicalengineers

RAG*3 for childcare
workers

Web community fornurses and nurse
students

RAD*3 for
Judo therapists etc.

National examinationreference bookfor Judo therapists etc.

RAG*3 services
MedicalCare
CareerRAD*3 for newly-graduatednursesOthers© SMS Co., Ltd.

Scholarship
information portal

HR solution
for hospitals

1. As of July 2024
2. Career businesses for doctors and pharmacists are operated by M3 Career, Inc., a JV between M3, Inc.(51%) and SMS (49%).
3. RAD: Recruiting ads service RAG: Recruiting agent service

84Business Portfolio*1 – Elderly/Disability Care Operators, Overseas,
New Business
Segment
Elderly/Disability
Care Operators

Overseas

ServicesManagement support platform
for elderly/disability care
operators

Drug information service forhealthcare professionals andinstitutions

Preventive solution forlifestyle-related diseases

New Business(Healthcare)

New Business(Senior life)

1. As of July 2024
© SMS Co., Ltd.

Web community for
dietitians

Web community for people
struggling with elderly care

Information portal for
management of elderly care operators

Research and informationon the aging society

Cross-border RAG*2 for healthcare professionals(Malaysia, Philippines, Ireland, UK, Germany, etc.)

Health guidance
solution

Frailty prevention service

Home-delivered meals
search site

Quit-smoking support
using ICT

Preventive solution for
elderly care turnover

Housing introduction
service for the elderly

Career related service for nurses(South Korea)

Medical ad services（Philippines, Indonesia, Malaysia）

Quit-smoking solution
with behavior therapy

Remote industrial
health service

Information portal ofdementia

Solution for dementia
prevention

Health maintenance/
promotion support
for women

Information portal ofindustrial health service

Stress checks specialized
for medical care andelderly care industries

Habitual support for
dementia prevention

Comprehensive information
service on housing

Information portal of
funeral companies

Web community forcare managers

85

History of Service Launches – Elderly Care Career
~FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

RAG*1 for care managers: Care Jinzai-bank May 2003

Elderly Care Career

Certification course information: Shikatoru Nov. 2003

RAD*1 for care workers: Kaigo Job Mar. 2004

RAG*1 for PT/OT/ST: PT/OT Jinzai-bank Sep. 2008

RAG*1 for care workers: Kaigo Job Agent Aug.2014

Elderly care certification course: Kaigo Job Academy Oct. 2015

© SMS Co., Ltd.

1. RAD: Recruiting ads service RAG: Recruiting agent service

86History of Service Launches – Medical Care Career
~FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

RAG*1 for nurses: Nurse Jinzai-bank Sep. 2005
Web community for nurses and nurse students: Nurse-senka Aug. 2006
RAG*1 for doctors: M3 Career Agent Aug. 2006

Company split and succeeded to M3
Career, Inc. at the end of Dec. 2009

Medical Care Career

RAG*1 for pharmacists: Yaku Kyari Agent Apr. 2007
RAD*1 for nurse students: Nurse-senka Shusyoku-navi Aug. 2009
HR solution for hospitals Apr. 2011
RAG*1 for dietitians: Eiyoshi Jinzai-bank May 2012
Scholarship information portal: Kango Shogakukin-navi Oct. 2012
RAG*1 for medical technologists: Kensagishi Jinzai-bank Sep. 2013
RAG*1 for radiological technologists: Hoshasengishi Jinzai-bank Jun. 2014
RAG*1 for clinical engineers: Kogakugishi Jinzai-bank Jul. 2014
RAG*1 for Judo therapists etc.: WILLONE Nov.2017
RAG*1 for childcare workers: Hoikushi Jinzai-bank Oct.2018© SMS Co., Ltd.

1. RAD: Recruiting ads service RAG: Recruiting agent service

87History of Service Launches – Elderly/Disability Care Operators,
Overseas

Elderly/Disability Care
Operators

~FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

Management support service for elderly/disability care operators: Kaipoke Jul. 2006

Research and information on elderly society : Korei Shakai Labo Nov. 2020

Information portal for management of elderly care operators: Kaigo Keiei.com Dec. 2020

(South Korea) Career related service for nurses: Nurscape Sep. 2011

Overseas

Medical ad services Jan. 2015

Medical Marketing, Clinical Decision Support : MIMS Oct. 2015

Cross-border RAG*1 for Healthcare Professionals Jun. 2017

© SMS Co., Ltd.

1. RAG: Recruiting agent service

88History of Service Launches – New Business (Healthcare)
~FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

Web community for dietitians: Eichie Jun. 2011
Information portal of dementia: Ninchisho Net Aug. 2011
Stress checks specialized for medical care and elderly care industries: Stress Check Sep. 2015

New Business (Healthcare)

Solution for dementia prevention: Nintore Apr. 2017
Preventive solution for lifestyle-related diseases: Remote Chat Guidance Apr. 2017
Habitual support for dementia prevention: Nintore Challenge Oct. 2017
Health guidance solution: Remote Chat Guidance Oct. 2017
Quit-smoking support using ICT: Kinen Shido Service Jul. 2018
Health maintenance/promotion support for women: Lady to Go! Dec. 2018
Remote industrial health service: Remote Sangyo Hoken Apr. 2019
Information portal of industrial health service: Sanchie Apr. 2019
Preventive solution for elderly care turnover: Remote Kaigo Sodan Jul. 2019
Quit-smoking solution with behavior therapy: One to One Kinen Shido Service Jul. 2022
Frailty prevention service: Data-driven Kaigo Frailty Yobo Jul. 2022
© SMS Co., Ltd.

89

History of Service Launches – New Business (Senior Life)
~FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

New Business (Senior Life)Web community for care managers: Care-mane.com Sep. 2006

Web community for people struggling with elderly care: Anshin Kaigo Jun. 2009

Housing introduction service for the elderly: Anshin Kaigo Shokai Center Apr. 2013 (Renewed from KaigoDB in Jul. 2024)

Home-delivered meal search site: Lifood Nov. 2013

Comprehensive information service on housing: Hapisumu Apr. 2016

Information of funeral companies: Anshin Sougi Mar. 2018

© SMS Co., Ltd.

90

Dividends*1

DPS (JPY)*2

Payout ratio

24.1%
20.4%

11.6%

12.3%

13.6%

14.8%

16.3%

15.6%

16.8%

17.2% 16.9%
15.5%

12.5%

5.5

6.8%
0.625
FY09

© SMS Co., Ltd.

1.25

1.5

2.0

2.5

FY10

FY11

FY12

FY13

1. Past stock splits are taken into account for the DPS calculation.
2. Payout ratio = DPS / EPS

3.5

3.5

FY14

FY15

FY16

6.5

FY17

20.0

7.5

FY18

15.5%

8.5

FY19

15.0

9.5

FY20

10.5

FY21

FY22

FY23

91

Historical Financial Results(in JPY millions)
FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

Net Sales

58

383

835

1,545

2,715

5,177

7,172

7,618

8,692

10,181

12,046

15,056

19,06923,054

26,61130,83635,14035,96038,89945,66753,973Operating
Income

(5)

52

109

269

426

1,230

1,261

1,480

1,519

1,570

1,730

2,079

2,756

3,646

4,021

4,743

4,935

5,470

6,318

7,279

8,269

Ordinary Income

(5)

49

108

269

415

1,238

1,266

1,530

1,734

1,990

2,340

2,693

3,509

4,430

5,007

5,979

6,355

6,653

7,726

8,759

9,901

Net Income

(5)

31

63

157

244

719

717

876

1,004

1,226

1,380

1,824

2,265

2,801

3,361

4,216

4,760

4,800

5,408

6,406

7,227

EPS*1 (JPY)

(5.8)

1.8

1.5

2.2

3.3

9.2

9.2

11.1

12.2

14.9

16.8

22.4

27.9

33.7

38.7

48.5

54.7

55.1

62.1

73.5

83.0

Total Assets

59

357

566

1,016

1,806

3,118

3,645

4,672

5,716

6,948

8,406

11,421

41,68943,231

46,08747,46750,99649,44456,58565,09872,475

Liabilities

55

166

196

489

822

1,410

1,266

1,430

1,579

1,794

2,331

4,497

28,532

21,64822,44631,92831,597

26,785

26,594

26,67728,190Net Assets

4

190

369

527

983

1,708

2,379

3,242

4,136

5,153

6,074

6,923

13,157

21,58323,641

15,53919,39822,65829,991

38,421

44,284

7.5

53.3

65.3

51.9

54.4

54.8

65.2

69.2

72.3

74.1

71.5

59.7

20.5

39.6

41.8

32.4

37.7

45.3

52.4

58.3

60.7

(124.9)

31.8

22.8

35.1

32.3

53.4

35.1

31.2

27.3

26.4

24.7

28.4

29.5

21.8

18.5

24.4

27.5

23.1

20.8

19.0

17.6

DPS*1 (JPY)

-

-

-

-

-

0.625

0.625

1.25

1.5

2.0

2.5

3.5

3.5

5.5

6.5

7.5

8.5

9.5

10.5

15.0

20.0

Dividend
Payout Ratio (%)

-

-

-

-

-

6.8

6.8

11.6

12.3

13.6

14.8

15.6

12.5

16.3

16.8

15.5

15.5

17.2

16.9

20.4

24.1

TSR*1*2 (%)

-

-

-

-

-

-

-

-

-

-

177.1

514.5

1,150.3

1,057.5

682.8

402.3

263.6

317.8

243.5

143.2

132.6

Equity Ratio (%)
ROE (%)© SMS Co., Ltd.

1. Past stock splits are taken into account for the EPS, DPS and TSR calculations.
2. (Ending share price of the fiscal year + Total dividends paid over 5 years) / Ending share price 5 fiscal years ago

92Number of Employees and Shareholder Composition
Number of Employees

Shareholder Composition*1

As of June 30, 2024:

As of March 31, 2024:
Number of shareholders 7,984

Category# of Employees

Consolidated

4,639

Japan

3,489

Overseas

1,150

Directors, Employees andShareholding associations
1%

Treasury stock
1%

Others6%

Individual Investors
7%

Founder
19%

Foreign
Institutional
Investors
42%

Domestic Institutional
Investors
24%© SMS Co., Ltd.

1. Pie chart shows the ratio of number of stocks held by each category.

93

Cautionary Statement with Respect to Forward-Looking Statements
These materials contain forward -looking statements, including estimates, projections, and statements related to the business operations of SMS Co., Ltd. (hereinafter, “theCompany”) based on current expectations and assumptions in light of the information available to the Company as of June 30, 2024. These forward-looking statements are notguarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance,
achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking
statements. These factors include, but are not limited to:• changes in economic conditions, market demand, and the competitive environment affecting Japan, Asia and other markets in which the Company operates;• reliance on digital and information technology, including with respect to the handling of medical care, elderly/disability care and other client information and operation of theCompany’s online community services;• Inability to effectively execute M&A/business alliance and overseas expansion strategies;• Changes in the laws, regulations and government policies in the markets in which the Company operates, particularly relating to employment placement, medical care, andelderly/disability care;• any damage to the brand image;• risk of infringing intellectual property rights;• fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the US dollar, the Singapore dollar, the Hong Kong dollar and the Australian
dollar; and• risk of impairment losses, particularly with respect to goodwill, trademark right and customer-related assets recognized in connection of the acquisition of Medica Asia (Holdco)
Limited in October 2015.
A discussion of these and other factors which may affect the Company’s actual results, performance, achievements or financial position is described in “Business Risks”
contained in the Company’s corporate website*1.
We do not intend, and disclaim any duty, to update or revise any forward-looking statements contained in these materials to reflect new information, future events or otherwise.
We caution you not to place undue reliance on any forward-looking statements contained in these materials.
For any inquiries on the materials, please contact below:
Corporate Planning Department
Email: irinfo@bm-sms.co.jp
Phone: +81-3-6721-2403© SMS Co., Ltd.

1. https://global.bm-sms.com/ir/management/risk_factor/

94