SMS Co., Ltd.
(Securities Code: 2175/TSE 1st section)

Presentation Material for Investors
Financial Results Summary for the First Half of
the Fiscal Year Ending March 31, 2022 (the 19th Fiscal Year)

October 29, 2021

Table of Contents© SMS Co., Ltd.

1

1H FY03/22 Consolidated Financial Results

pp.3 – 7

2

References

pp.9 – 88

Mission and Strategy

pp.9 – 71

Appendix

pp.72 – 881© SMS Co., Ltd.

1

1H FY03/22 Consolidated Financial Results

pp.3 – 7

2

References

pp.9 – 88

Mission and Strategy

pp.9 – 71

Appendix

pp.72 – 882

1 Historical Financial Results and FY03/22 Forecast✓ Expect to achieve growth in both sales and profits for the 18th consecutive year since ourestablishment.

Trends in net sales and ordinary income [JPY million]
Net Sales

Ordinary Profit
40,04335,140 35,960
30,837
26,611
23,054

7,352

19,0695,979

15,056

7,172 7,618

3,509

10,181

1,990
5,177
1,530 1,734
2,715
1,238 1,266
1,545
835
383
58
415
269
108
49
(5)

2,340

5,007
4,430

12,046
8,692

6,355

6,653

2,693

(Forecast)© SMS Co., Ltd.

3

1 FY03/22 Consolidated Financial Results (1H)
✓ Achieved YoY growth in both sales and profits.
✓ Marked steady progress toward the FY03/22 guidance.

Consolidated Income Statement [JPY million]© SMS Co., Ltd.

1H FY03/21
Actual1H FY03/22
ActualYoY
ChangeNet Sales

18,63819,927+7%

Operating
Income

2,949

3,682

+25%

Ordinary
Income

3,852

4,700

+22%

Net
Income

2,775

3,404

+23%

4

1 Career Segment (1H)YoY Comparison of Sales [JPY million]
1H FY03/21
Actual*1

1H FY03/22
ActualElderly Care
Career

5,992

5,597

(7%)

Medical Care
Career

7,377

7,473

+1%

Total

13,36913,071(2%)

YoY
ChangeHighlights• The COVID-19 pandemic negatively affected both Elderly Care Career andMedical Care Career and temporarily decreased the growth rates.*2• The negative impact on matching activities is diminishing, so we decided tohire more career partners than planned in the original budget.
*1. The stress check service for medical institutions was transferred from Career Segment to New Business Segment, and the FY03/21 sales werereclassified accordingly.
*2. The sales of Elderly Care Career decreased by JPY 270 million due to the termination of temporary staffing service for care workers in August2020. The sales of Medical Care Career decreased by JPY 140 million due to changes in revenue recognition standards, which were applied fromthe beginning of FY03/22.
© SMS Co., Ltd.

5

1 Elderly Care Operators Segment (Kaipoke, 1H)
YoY Comparison of Sales [JPY million]

Elderly Care
Operators(Kaipoke)

1H FY03/21
Actual1H FY03/22
Actual

2,775

3,464

YoY
Change+25%

Highlights• The number of Kaipoke memberships increased steadily.
– 33,100 service offices (22,650 locations*1) as of October 1, 2021.
– 1H membership increase: 2,000 service offices (1,400 locations)• Sales of optional add-ons such as additional tablets and smartphones
increased.

*1. # of locations: the number of elderly care service office locations, # of service offices: the number of elderly care services provided based on
the public elderly care insurance scheme e.g. When an operator provides two types of elderly care services, home care support service and homevisit elderly care, at one specific address, the number of locations is counted as one and the 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.
© SMS Co., Ltd.

6

1 Overseas Segment (1H*1)
YoY Comparison of Sales [JPY million]

Overseas

1H FY03/21
Actual1H FY03/22
Actual

1,885

2,567

YoY
Change+36%

Highlights• Medical platform business grew significantly owing to the expanding demandfor digital services such as online events and eDMs*2, along with the digitaltransformation accelerated by the COVID-19 pandemic.
• Global career business grew significantly even though the influence of travel
restrictions due to the COVID-19 pandemic remained to a certain extent.

*1. Income statement of MIMS is consolidated with a three-month delay and the 1H results are for January to June. (Please refer to p.78)*2. Electronic direct mails© SMS Co., Ltd.

7

© SMS Co., Ltd.

1

1H FY03/22 Consolidated Financial Results

pp.3 – 7

2

References

pp.9 – 88

Mission and Strategy

pp.9 – 71

Appendix

pp.72 – 888

Mission and Strategy© SMS Co., Ltd.

9

Mission© SMS Co., Ltd.

10

2 Group Mission

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

© SMS Co., Ltd.

11

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

Healthcare© SMS Co., Ltd.

MedicalCare

Elderly
Care

SeniorLife

12

2 Information Infrastructure✓ Define information infrastructure as a platform to connect those whom we provide value
to: 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 care
operators.

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

Professionals
Nurses, elderly care workers,
dietitians, etc. who directly
provide services to end users© SMS Co., Ltd.

Operators
Hospitals, elderly care operators,
renovation companies, etc.
which directly provide services to
end users13

2 Business Areas✓ Our business areas are combinations of four business domains in an aging society andthree types of stakeholders whom we provide value to.
✓ Build the information infrastructure by developing and nurturing businesses in eachbusiness area.

Healthcare

Medical Care

Elderly Care

Senior Life

Professionals

Operators

Business
Areas

End users© SMS Co., Ltd.

14

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

15

2 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 about 35% in 2040 when the elderly population
approaches its peak.
✓ The working-age population is declining, and its ratio will drop to nearly 50% by 2040.
Population trends in Japan*1(in million)

0–14

150

15–64 (working-age)

65– (the elderly)
The working-age populationand its ratio will fall.

67.9%

59.3%
53.9%

75%

working-age rate
51.6%

100

50%

Peak of theelderly population
35.3%

aging rate
38.1%

28.8%

50
17.4%

25%

The elderly population andits ratio will increase.

0

0%
1950

2000

2020

2040

* 1. MIC, "Census", "Population estimates"
National Institute of Population and Social Security Research "2017 Estimated future population of Japan"© SMS Co., Ltd.

2060

16

2 Three Critical Issues We Face in the Aging Society✓ We are facing three critical issues in the aging society with the low birth rate, aging andpopulation decline.
✓ Need to solve these issues in order to improve the quality of life in the aging society.

© SMS Co., Ltd.

Issue
1

Difficulty in sustaining high-quality medical care and elderly careservicesIssue
2

Severe burden on the working generation

Issue
3

Difficulty in solving problems about life in the aging society

17Issue 1: Difficulty in sustaining high-quality medical care and2 elderly care services✓ While the demand for medical care and elderly care services is increasing due to the
population aging, a growing shortage of medical care and elderly care professionals ismaking it difficult to sustain high-quality medical care and elderly care services.
JPY Trillion
Medical care

Elderly care

24.6
Medical andelderly careexpenses
forecast*1

14.6
10.7
68.3
39.2
2018

48.7

2025

2040
in thousands

Shortage of
medical andelderly care
professionals*2

Shortage of Nurses

60–270？

Shortage of elderly
care workers

220

650

*1. Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”*2. Nurses: MHLW, “Subcommittee on supply and demand of nursing staff, study group on supply and demand of medical care workers”
Care workers: MHLW, “Required number of elderly care staff based on the 8th plan for long-term care insurance”© SMS Co., Ltd.

18

2 Issue 2: Severe burden on the working generation✓ The burden on the working generation will become more serious due to the increasingsocial security expenses for pensions, medical care, and elderly care, as well as thedeclining working-age population who cover these expenses.
Pension

Medical care

JPY Trillion

Elderly care

166.1

x1.6

24.6
106.6
10.7

Social security
expenses
forecast*1

39.2

123.2
14.6

68.3

48.7

42.6

18.6

73.2

56.7

59.9

1990

2018

2025

2040

5.8ppl2.1ppl1.9ppl

1.5ppl24.0

Working
generation per
the elderly*2*1. MHLW, “Trends in social security benefit costs”, Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”*2. CAO, “2020 White paper on the aging society”© SMS Co., Ltd.

19

2 Issue 3: Difficulty in solving problems about life in the aging society✓ While service demands are changing and expanding with the population aging, information
related to life in the aging society is not sufficient in terms of quality and quantity, and theservice supplies will also be in short due to a shortage of workforce.
✓ The elderly and their families will have difficulties in solving problems about life in the
aging society.
Rapid growth
1950

Stable growth
1975

Low growth
2000

2025

2050

65–
Age
composition of
population*1
15–64

0–14 years old

Requiredservices* 1. CAO, "2020 White paper on the aging society"© SMS Co., Ltd.

20

2 Our Solutions for Issues in the Aging Society✓ Address the issues in the aging society by setting concrete solutions for them and building
an information infrastructure.

Social issues in the aging society

Our Solutions

Issue
1

Difficulty in sustaining highquality medical care and elderly
care services• Solve labor shortages and uneven distributionof medical care and elderly care professionals.
• Improve the management of medical care andelderly care operators.

Issue
2

Severe burden on the working
generation• Increase healthy workforces.

Issue
3

Difficulty in solving problems
about life in the aging society• Provide a variety of options and high-quality
decision-making information.

© SMS Co., Ltd.

21

2 Strategic Business Areas✓ Aim to solve the three critical issues in the aging society by defining our strategic businessareas as Career, Elderly Care Operators, Healthcare, and Senior Life, and by strategicallydeveloping and nurturing businesses to address the issues.

Healthcare

Issue
1

Professionals

Operators

Medical Care

Issue
2
Healthcare
Business

Elderly Care

Senior Life

CareerBusiness

Issue
1
Elderly Care
Operators Business

Issue
3
Senior Life
Business

End users© SMS Co., Ltd.

22

2 Realization of the Group Mission✓ Contribute to improving the quality of life in the aging society by building an information
infrastructure and providing value to end users, professionals, and operators.

End users
End users can:- enjoy high-quality medical care and elderly careservices continuously and live with peace of mind;- live and work healthier for a longer period of time;- solve problems about life; and- make decisions on their own initiative and realize
better lives.

Professionals

Operators

Professionals can:- choose the best workplace from various options;- improve their skills and knowledge by goodeducation and training; and- build better career as professionals.
As a result, they can enjoy their work and provide
good services to end users.

Operators can:- hire good staff who work productively over the longterm; and- focus on the care for the elderly by improving theiroperational efficiency and management.
As a result, they can provide good services to end
users by good staff and good management.

© SMS Co., Ltd.

23

Growth Track© SMS Co., Ltd.

24

2 Location✓ Started our business in Japan in 2003 and have accelerated our overseas expansion
since the acquisition of MIMS in 2015.
✓ Have offices in 17 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
Ireland25

2 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 ofour business portfolio.

Business Areas
Career Business - Medical Care Career

Breakdown of Net Sales
JPY Bn• Recruiting service for medical care professionals

Career Business - Elderly Care Career• Recruiting service for elderly care professionals

35

New Business• Developing new businesses mainly in Healthcare
and Senior Life domains*1. Healthcare professionals© SMS Co., Ltd.

5.1

14%

5.9

25

19.1
1.2
2.6

20

Overseas Business• Marketing support service for medical-relatedcompanies• Clinical decision support• Domestic/cross-border recruiting service of HCPs*1

4%30

Kaipoke• Management support platform for elderly care
operators

36.0
1.4

15
10
5

2.5
7.6

Others
3%
15%

1.1

82%

6%
14%
13%

10.9

16%

30%

17%

3.3
50%

35%
12.5

9.5

6.2
0
FY03/11
Medical Care Career
Overseas

FY03/16
Elderly Care Career
New Business

FY03/21
Kaipoke26

2 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 our businesses, 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.

Future27

Career
Strategy© SMS Co., Ltd.

28

Issue 1: Difficulty in sustaining high-quality medical care and2 elderly care services (repost)✓ While the demand for medical care and elderly care services is increasing due to the
population aging, a growing shortage of medical care and elderly care professionals ismaking it difficult to sustain high-quality medical care and elderly care services.
JPY Trillion
Medical care

Elderly care

24.6
Medical andelderly careexpenses
forecast*1

14.6
10.7
68.3
39.2
2018

48.7

2025

2040
in thousands

Shortage of
medical andelderly care
professionals*2

Shortage of Nurses

60–270？

Shortage of elderly
care workers

220

650

*1. Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”*2. Nurses: MHLW, “Subcommittee on supply and demand of nursing staff, study group on supply and demand of medical care workers”
Care workers: MHLW, “Required number of elderly care staff based on the 8th plan for long-term care insurance”© SMS Co., Ltd.

29

2 Solution for Issue 1 in Career Business✓ Contribute to solving the social issue “Difficulty in sustaining high-quality medical care andelderly care services” by solving labor shortages and uneven workforce distribution
through optimized matching of professionals and operators.

Healthcare

Issue
1

Professionals

Operators

Issue
2
Healthcare
Business

End users© SMS Co., Ltd.

Medical Care

Elderly Care

Senior Life

CareerBusiness

Issue
1

Elderly Care
Operators Business

Issue
3
Senior Life
Business

Issue: Difficulty in sustaining high-quality
medical care and elderly care services
Solution: Solve labor shortages anduneven distribution of medical care andelderly care professionals

30

2 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
650,000 professionals in 2040.
Number of nurses / their turnover rate*1
Demand188 – 202

in 10 thousands

Demand 243(Shortage 22)

in 10 thousands
Shortage
6 – 27

150

154

157

166

163

160

166

Demand280

Number of care workers / their turnover rate*2

168

168

shortage65
221

175 – 182
151

163

171

177

184

190

195

201

198

215

16.1% 17.0% 16.6% 16.5% 16.5% 16.7% 16.2% 15.4% 15.3%
10.9% 11.0% 11.0% 10.8% 10.9% 10.9% 10.9% 10.7% 11.5%
2011

2012

2013

2014

2015

2016

2017

2018

2019

2025

Jobs-to-applicants ratio of nurses*3

2011 2012 2013 2014 2015 2016 2017 2018 20192025 2040

Jobs-to-applicants ratio of care workers*3

4.0

5.0
Nurses4.0

3.0

Care workers
3.0

2.0
2.0

All job types
1.0
0.0
2012

1.0

2013

2014

2015

2016

2017

2018

2019

2020

0.0
2012

All job types
2013* 1. Japanese Nursing Association, Number of nurses in 2025 – MHLW
* 2. Number of elderly care workers – MHLW, Turnover rate – Care Work Foundation* 3. MHLW© SMS Co., Ltd.

2014

2015

2016

2017

2018

2019

2020

31

2 Mission of Career BusinessWe aim to contribute to sustaining
high-quality medical care and elderly care services
by solving labor shortages anduneven workforce distribution.

© SMS Co., Ltd.

32

2 Strategy of Medical Care Career✓ Provide various supports for professionals to pursue their ideal career throughout theirprofessional lives, including supports in: finding/changing jobs, returning to work, anddeveloping their career.
✓ Promote optimal matching between professionals and operators in order to solve unevenworkforce distribution among medical functions and regions.

Medical care
professionals

Students

Operators
Careerinformation/
opportunities

Community

Support for
HR issues

Large hospitals
Regional core hospitals

Job fair
Professionals

Clinics
Recruiting agent

Potential workers

Career issues/
needs

Recruiting ads

HR issues/
needsHome-visit nursing
Elderly care facilities
Solving unevenworkforce distribution
among medical
functions/ regions

Professionals’
information© SMS Co., Ltd.

Operators’
information
33

2 Strategy of Elderly Care Career✓ Promote new entry from outside the industry through helping new entrants obtain aqualification and find a good job at a good operator.
✓ Prevent turnover to outside the industry through enhancing the work environment ofoperators and optimizing matching between professionals and operators.

Promotenew entry

Elderly care
professionals
Without experience

Operators
Careerinformation/
opportunities

Without certification
Professionals
Prevent fromleaving theindustry

Potential workers

Professionals’
information© SMS Co., Ltd.

Career issues/
needs

Recruiting agent

Support for
HR issues

Elderly care facilities

Recruiting ads

Home-visit elderly care

SchoolDay careRetention

HR issues/
needs

OthersOperators’
information34

2 Growth Scenario✓ The Career Segment has huge growth opportunities.
✓ In addition to the market share expansion of existing services such as RAG for nurses,
services for elderly care workers with serious labor shortages and services for newlycovered occupations such as childcare workers drive the growth.
Current and future sales by service*1: Sales for FY03/21: Estimates of the
future sales

Full-scale expansion
started in FY03/17

RAG forchildcare workers
RAG for nurses

Launched in
FY03/19

RAG for care workers

School

RAG for other co-medicals
RAG/RAD for
Judo therapists etc.*3

RAD for care workers
RAG for PT/OT/ST
RAD fornursesRAD for newlygraduated nurses

Launched byacquiring WillOne
in FY03/18*4

RAG for care managers

Elderly Care Career： JPY 10.9 billion*3

Medical Care Career: JPY 12.5 billion*3*1. Career businesses for doctors and pharmacists are operated by M3 Career, Inc., a JV between M3, Inc.(51%) and SMS (49%).
*2. RAG: Recruiting Agent service RAD: Recruiting Ads service *3. Sales for FY03/21 *4. Currently merged to SMS© SMS Co., Ltd.

35

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

36

Issue 1: Difficulty in sustaining high-quality medical care and2 elderly care services (repost)✓ While the demand for medical care and elderly care services is increasing due to the
population aging, a growing shortage of medical care and elderly care professionals ismaking it difficult to sustain high-quality medical care and elderly care services.
JPY Trillion
Medical care

Elderly care

24.6
Medical andelderly careexpenses
forecast*1

14.6
10.7
68.3
39.2
2018

48.7

2025

2040
in thousands

Shortage of
medical andelderly care
professionals*2

Shortage of Nurses

60–270？

Shortage of elderly
care workers

220

650

*1. Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”*2. Nurses: MHLW, “Subcommittee on supply and demand of nursing staff, study group on supply and demand of medical care workers”
Care workers: MHLW, “Required number of elderly care staff based on the 8th plan for long-term care insurance”© SMS Co., Ltd.

37

2 Solution for Issue 1 in Elderly Care Operators Business✓ Contribute to solving the social issue “Difficulty in sustaining high-quality medical care andelderly care services” by improving the management of elderly care operators through amanagement support platform “Kaipoke”.

Healthcare

Issue
1

Professionals

Operators

Issue
2
Healthcare
Business

End users

Medical Care

Elderly Care

Senior Life

CareerBusiness

Issue
1
Elderly Care
Operators Business

Issue
3
Senior Life
Business

Issue: Difficulty in sustaining highquality medical care and elderly careservices
Solution: Improve the managementof elderly care operators© SMS Co., Ltd.

38

2 Business Environment of Kaipoke✓ As the population ages, the number of elderly care operators continues to increase,reaching approximately 250,000 offices.
The number of elderly care service offices and the elderly population*1# of elderly care service offices CAGR: 4%(in 10 thousands)

2,948 2,975

168

3,079

(in thousands)

186

176

3,190

3,558 3,589 3,619
3,459 3,515
3,387
3,300

210

199

223

239

244

248

251

233

179

186

189

192

194

143

162

129

135

153

172

39

41

43

46

48

51

54

54

55

56

57

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Not included in Kaipoke coverage

Operators that Kaipoke covers*2· In-home care support· Home-visit elderly care
· Day care
· Home-visit nursing· Outpatient rehabilitation etc.

Operators that Kaipoke does not cover *2• Commuting care for elderly with dementia• Short stay
• Daily life care for elderly in specific facilities• Small-sized multifunctional in-home care
• Facilities etc.

Included in Kaipoke Coverage

the elderly population*1. Sources：Number of elderly care service offices – MHLW; The elderly population – MIC*2. As of Mar. 2021
© SMS Co., Ltd.

39

2 Business Environment of Kaipoke✓ 80% of elderly care operators are small corporations with under 50 employees.
✓ It is difficult for these operators to focus on the care for the elderly due to various
operational/management issues such as a lot of indirect works including document
preparation, insufficient manpower, low purchasing power, and cash-flow issues.
Size of elderly care operators*1
Number of employees per operator
100 – 299
7.5%

300 – 499
0.9%

500 –
0.5%

50 – 99
8.7%

c. 80%

1 – 4982.4%* 1. Survey by SMS© SMS Co., Ltd.

40

2 Mission of Kaipoke

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

© SMS Co., Ltd.

41

2 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 care operators.
✓ Offer more than 40 services that support operations, recruitment, purchasing, finance,
sales, M&A, etc., on top of the insurance claim service that is essential for elderly care
operations.
Management support platform
Service providers

Partner A

Operators

Servicedevelopment/provision

Insurance claim

In-home care support

Recruitment

Day careBusiness support

Management
SupportHome-visit elderly careFinanceHome-visit nursing

Purchasing

Outpatient rehabilitation+α+αPartner B
Partner C

Servicedevelopment/
improvement© SMS Co., Ltd.

Elderly caremanagement
data

Accumulation of
information42

2 Strategy of Kaipoke✓ Maximize the value as a management support platform by 1 – 5 below.

4 Penetration by customer success+α5Business
succession

Analyze andleverage the data
accumulated

Sales
Finance

Purchasing
Recruiting
Operation
Insurance claim

2

3Development of services
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

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

44

2 Issue 2: Severe burden on the working generation (repost)✓ The burden on the working generation will become more serious due to the increasingsocial security expenses for pensions, medical care, and elderly care, as well as thedeclining working-age population who cover these expenses.
Pension

Medical care

JPY Trillion

Elderly care

166.1

x1.6

24.6
106.6
10.7

Social security
expenses
forecast*1

39.2

123.2
14.6

68.3

48.7

42.6

18.6

73.2

56.7

59.9

1990

2018

2025

2040

5.8ppl2.1ppl1.9ppl

1.5ppl24.0

Working
generation per
the elderly*2*1. MHLW, “Trends in social security benefit costs”, Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”*2. CAO, “2020 White paper on the aging society”© SMS Co., Ltd.

45

2 Solution for Issue 2 in Healthcare Business✓ Contribute to solving the social issue “Severe burden on the working generation” byincreasing healthy workforces through a platform that supports “health and productivity
management” of companies.

Healthcare

Issue
1

Professionals

Operators

Issue
2
Healthcare
Business

End users

Medical Care

Elderly Care

Senior Life

CareerBusiness

Issue
1
Elderly Care
Operators Business

Issue
3
Senior Life
Business

Issue: Severe burden on theworking generation
Solution: Increase healthy
workforces© SMS Co., Ltd.

46

Declining QOL*1 and Productivity Caused by Physical/Mental
2 Disorders✓ Many workers have lifestyle-related diseases or risk of them, which may cause critical
illnesses such as diabetes.
✓ Mental disorders caused by overwork or workplace stress are increasing in recent years.
✓ The government encourages “health and productivity management” in which companies
promote the health of employees and their families.

Physical disorder◆ Risk of lifestyle-relateddiseases◆ Lifestyle-relateddiseases

Number of recipients ofspecific health guidance*2

Number of diabetics*3

Mental disorder
Number of patients withmood disorders*3
Approx. 1.28 million

Approx. 3.29 million

Approx. 5.1 million* 40 – 74 years old

Number of
hypertensive patients*3
Approx. 9.94 million* 1. Quality of life
* 2. MHLW, "2018 Implementation of specified health checkups and specific health guidance"* 3. MHLW, "2017 Patient survey"© SMS Co., Ltd.

47

2 Mission of Healthcare BusinessWe aim to contribute to improving QOL*1 andincreasing the number of healthy workforces
by preventing and improving
lifestyle-related diseases and mental disorders.

* 1. Quality of life
© SMS Co., Ltd.

48

2 Health and Productivity Management Support Platform✓ Provide digital health services*1 to 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

Specific healthguidance

DoctorServiceprovision

Nurse

Companies/
Health insurance
association

Aggravation
prevention

Prevention /Improvement

Employee

Anti-smoking program
Union member

Dietitian+αIndustrial healthFamily+αServicedevelopment/
improvement

HealthData

Accumulation of
information* 1. Digital Health : To improve 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.
© SMS Co., Ltd.

49

2 Remote Health Guidance Service✓ Provide health guidance service for HIAs*1 aiming to prevent lifestyle-related diseases of
employees and their families. The service is provided by registered dieticians and basedon the results of verification projects conducted with MHLW.
✓ Remote ​service using smartphones enables frequent and continuous intervention.

Healthinsurance
association(HIA)

Recipients of
guidance

Recruitment
from our online
dietitiancommunity

Consultation

Prevent lifestylerelated diseasesof the insured

Chat• Medical checkup results• Blood test
• Number of steps and activity• Body weight and blood pressure• Meal image• Inquiry and questionnaire• Chat data
© SMS Co., Ltd.

Registereddietitians* 1. Health insurance associations

My Data

Medicalspecialists
Effective guidance
method based on thedata analysis

50

2 Remote Industrial Health Service✓ Provide comprehensive services related to industrial health for client companies, which
includes industrial physicians' visits, stress checks, and establishment/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.
ClientIndustrial
nursesEmployees• Enhance employees’
Health• Develop industrial
health system

Health committee

Online interview

Recruitment fromour online nurse
community

Interview setting
Industrial
healthOperation support
agencyIndustrial
physicians

Stress check

Recording
Visits and workplacemonitoring© SMS Co., Ltd.

51

2 Our Strength✓ Leveraging our strengths in healthcare professional (HCP) networks, ICT capabilities, andproven results from verification projects conducted with ministries and national agencies,
we offer effective solutions with a reasonable price for prevention of lifestyle-relateddiseases and mental disorders.

HCP Networks

 Enable us to recruit skilled
HCPs essential for
healthcare services.

Effective and affordable solutions forprevention of lifestyle-relateddiseases and mental disorders

ICT Capabilities
 Enables us to provide
inexpensive and efficient services
using ICT.
* 1. Joint project with MHLW, METI, and national hospitals© SMS Co., Ltd.

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

52

2 Strategy of Healthcare Business✓ Maximize the value as a health and productivity management support platformby 1 – 5 below.

+α4 Improve services by recruiting and training HCPs

5

Support for employees
caring for families

Analyze andleverage thehealth data
accumulated

Health consultation

Stress check
Industrial health
Promotion totake med-checkups
Anti-smoking
program
Aggravation
prevention of diabetes

Health guidance3
Develop digital healthservices for health andproductivity management 1© SMS Co., Ltd.

2

Increase the number of clients/users

Health insurance
association

Small and medium
sized companies

Hospital

Elderly care
operator+αExpand industry/business type coverage

53

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

54

Issue 3: Difficulty in solving problems about life in the aging
2 society (repost)✓ While service demands are changing and expanding with the population aging, information
related to life in the aging society is not sufficient in terms of quality and quantity, and theservice supplies will also be in short due to a shortage of workforce.
✓ The elderly and their families will have difficulties in solving problems about life in the
aging society.
Rapid growth
1950

Stable growth
1975

Low growth
2000

2025

2050

65–
Age
composition of
population*1
15–64

0–14 years old

Requiredservices* 1. CAO, "2020 White paper on the aging society"© SMS Co., Ltd.

55

2 Solution for Issue 3 in Senior Life Business✓ Contribute to solving the social issue “Difficulty in solving problems about life in the aging
society” by developing a platform that connects people who have some worries orproblems about life, with advisors and solution services.

Healthcare

Issue
1

Professionals

Operators

Issue
2
Healthcare
Business

End users

Medical Care

Elderly Care

Senior Life

CareerBusiness

Issue
1
Elderly Care
Operators Business

Issue
3
Senior Life
Business

Issue: Difficulty in solving problems aboutlife in the aging society
Solution: Provide a variety of options
and high-quality decision-making
information.

© SMS Co., Ltd.

56

2 Mission of Senior Life BusinessWe aim to contribute to the better lives of people byoffering a wide range of choices and information
related to life in the aging society.

© SMS Co., Ltd.

57

2 Problem-solving Platform✓ Help to solve a variety of problems, mainly related to elderly care, through communication
among those who have similar problems and advices from professionals.
✓ Introduce service providers to solve problems related to specific areas such as housing,food, and end-of-life planning.
Problem-Solving Platform
The elderly
and families

Answer /adviceInformation
gathering/consultation

Serviceproviders

Elderlycare

Housing

Food

Business
Introduction

Customer
introduction

End-of-lifeplanning+αService delivery© SMS Co., Ltd.

58

2 Strategy of Senior Life Business✓ Maximize the value as a problem-solving platform by 1 – 4 below.

Variety of problems mainly
related to elderly care
Elderly care

Problems related to specific areas
3

Increase the numberof service providers

The elderly andfamilies

4

Support to improve
management ofservice providers

+α

+α

+α

+α

+α

ProviderProviderProviderProviderProviderProviderProviderProviderProviderProviderRenovation

Care facility
introduction

Elderly meal

Funeral+αProfessionals

Housing1

Increase the value as acomprehensive consultation
desk for elderly care

© SMS Co., Ltd.

2

Food

End-of-lifeplanning+αExpand category coverage
59

Overseas
Strategy© SMS Co., Ltd.

60

2 Overview of Overseas Segment✓ Define two strategic business areas in the segment:– Medical Platform Business, operated mainly in MIMS, 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 medicalrelated companies

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

Global Career Business*1. Healthcare professionals© SMS Co., Ltd.

Domestic/cross-border recruiting
service of HCPs

61

Medical Platform Business© SMS Co., Ltd.

62

Issue: Low Availability of Medicines and Medical Devices, and2 Inadequate 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, and social customs are different by country.
✓ This results in the social issue of low availability of medicines/medical devices andinadequate quality of medical care.
Health Expenditure to GDP*1
20%
16.9%
15%

5.4%

5%

4.8%

4.5%

4.4%

3.8%

3.8%

3.5%

2.9%

Indonesia

5.9%

India

10.0%

Malaysia

10%

Thailand

11.0%* 1. WHO (2018)© SMS Co., Ltd.

Philippines

Singapore

Myanmar

China

Vietnam

U.K.

Japan

U.S.

0%

63

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

© SMS Co., Ltd.

64

2 Medical Platform✓ Support the marketing activities of medical-related companies by utilizing our membershipbase 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-relatedcompanies more effective and efficient.
Medical Platform
Medical-relatedcompanies
Pharmaceuticalcompanies

HCPs

Information sharing
including issues/needs
regarding marketing

Localized valuable
information

Symposium/
Seminar

Medical device
manufacturers

Academic paper

Other healthcare
manufacturers

Online CME*1

Industry associations

Solution/support
for marketing issues(doctor/academy)

Government agencies

Medical care news

Doctors
Dentists

Expansion ofmembership base/enhancement ofengagement

Pharmacists
NursesClinical guideline

Students

Drug information+α+αService development
and improvement

Accumulation of
information

Data of employees,
products, and patients* 1. CME stands for continuing medical education.
© SMS Co., Ltd.

65

2 Strategy of Medical Platform Business✓ Maximize the value as a medical platform by 1 – 5 below.

4 Engage healthcare professionals
5
Analyze andleverage theinformation
accumulated+αDrug information
Clinical guideline
Medical care news
Online CME
Academic paper
Symposium/Seminar

3
Expand types of
information to provide/
improve quality and1quantity of the information© SMS Co., Ltd.

2

Increase the number of clients

Pharmaceuticalcompany

Medical device
manufacturer

Other healthcare
manufacturer

Industry
association

Government
agency+αExpand industry/business type coverage

66

Global Career Business© SMS Co., Ltd.

67

Issue: Global Shortage and Uneven Distribution of Healthcare
2 Professionals✓ While the environment surrounding medical care services differs from country to country,
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 have become an issue
in many countries due to the increasing demand for medical care.
Health Expenditure*1

Expected Shortage of Nurses*2

in USD Trillion

in thousands

10.0

60 – 270(2025)

Germany400(2030)

Australia

120(2030)

2.5

South Korea

160(2030)

0.0

Saudi Arabia

100(2030)

Japan
7.5

5.0

2000

2005

2010

2015

2018

*1. WHO (FX rates: 2018)*2. MHLW (Japan), DPR (Germany), HWA (Australia), MHW (South Korea), Challenges Facing the Nursing Profession in Saudi Arabia: An
Integrative Review/Nourah Alsadaan, Linda K. Jones, Amanda Kimpton and Cliff DaCosta© SMS Co., Ltd.

68

2 Mission of Global Career BusinessWe aim to contribute to improving the quality of
medical care around the world
by solving the shortage and uneven distribution ofhealthcare professionals.

© SMS Co., Ltd.

69

2 HCP*1 Supply Platform✓ Promote optimal cross-border and domestic matching according to the supply of HCPs
and the demand from healthcare institutions*2.

HCP Supply Platform
HCPs
U.K.

Healthcare Institutions
Cross-bordermatching

U.K.

Singapore

Germany

Malaysia

Australia

Ireland

South Korea

New Zealand

Malta

China

UAE

Australia

U.S.

Malaysia

New ZealandIreland

Philippines
India
South Korea

Domestic
matching

Saudi Arabia
UAE
Qatar

China

*1. Healthcare professionals*2. Hospitals, clinics etc.
© SMS Co., Ltd.

70

2 Strategy of Global Career Business✓ Maximize the value as a HCP supply platform by 1 – 5 below.

HCP Supply Platform
HCPs
U.K.

Cross-bordermatching

Healthcare Institutions
U.K.

Singapore43

IrelandGermany

Malaysia

1

2

Increase Number of HCPs

Expand of Countries

Australia

Ireland

South Korea

Malta

China

Australia

U.S.

Expand Countries

Increase Number of Clients© SMS Co., Ltd.

New Zealand
UAE
Malaysia

Optimizing/
increasing
matching
5

Philippines
India
South Korea
China

New Zealand
Saudi Arabia

Domestic
matching

UAE
Qatar

71

Appendix© SMS Co., Ltd.

72

2 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.
WebsiteCare workers

NursesAttracting job seekers

Sales activity

Registration

Job orders

Matching

Matching

Hospitals

Career partner

Elderly care
operators

FeeBusiness model of Recruiting Ads
Receive a fee for each application or each hiring via our Recruiting Ads website.
WebsiteCare workers© SMS Co., Ltd.

Attracting job seekers

Sales activity

Registration

Recruiting ads

Application

Elderly care
operators
Fee73

2 Kaipoke’s Main Services
Subscription-based management support platform providing morethan 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.*2

Sales Support

Offer a function to prepare sales leaflets and a list of care managers who are the sales targets of elderly
care operators.

Operation
Improvement

Provide one iPad for free to enable care workers to complete documentations at their customer sites.

Opening
SupportSupport 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

M&A

Elderly care operators can procure various equipments and supplies, such as rental smartphones, in aneasy and inexpensive way.

Supporting the succession of elderly care operators*1. Additional payments are required for the use of two or more iPads, factoring, etc.
*2. Charged for some types of occupations.
© SMS Co., Ltd.

74

2 MIMS Group Profile

MIMS group global coverage

MIMS group profile

Founded

1963

Business• Medical Platform• Global Career

Globalcoverage

17 countries and regions,mainly in APAC

Number of
2.80 million
memberships
Acquisition
date© SMS Co., Ltd.

Oct. 7, 201575

2 Business Model in Medical Platform Business
Medical Marketing *1

Clinical Decision Support *2

Support marketing activities of medicalrelated companies*3

Provide a drug database for prescription
error checks in healthcare institutions

Medical-relatedcompanies
Fee

Optimized marketing
solutionsFee• Drug database• Database can be integrated
into core systems ofhealthcare institutions

Medical/healthcare
information via various
channels (publication,web, event etc.)
HCPs(e.g. doctors, nurses,
pharmacists)

Healthcare institutions(e.g. hospitals, clinics,
pharmacies)*1. Renamed from Pharma Marketing *2. Renamed from Healthcare Data
*3. Operators such as pharmaceutical companies, medical device manufacturers, healthcare service operators, and industrial group.
© SMS Co., Ltd.

76

2 Acquisition History of Global Career Business✓ Starting 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, and to Europe
and Oceania in 2019.

September 2011

Acquired NURSCAPE CO., LTD. (Currently Medilabs Co., Ltd.)• Recruiting ads business for nurses/online community for nurses in SouthKorea• Launched the Global Career Business.

June 2017

Acquired MELORITA CONSULTANTS SDN. BHD.
• Recruiting agent business for nurses in Malaysia• Started a cross-border matching between Malaysian nurses and hospitals in
the middle east.

May 2018

Acquired MEDICAL STAFFING RESOURCES, INC.
• Recruiting agent business for nurses in the Philippines• Started to introduce Filipino nurses.

August 2019

© SMS Co., Ltd.

Acquired CCM INTERNATIONAL LIMITED• Recruiting agent business for healthcare professionals in Ireland• Started to introduce European/Oceanian healthcare professionals, as well as
to expand client hospitals in Europe/Oceania.
772 Consolidation of MIMS Financial Results✓ Income statement of MIMS is consolidated to income statement of SMS following a time
lag of three months.

Illustration of Income Statement Consolidation*1：SMS consolidated I/S (excl. MIMS)：MIMS I/S

FY21

FY22

Q1

Q2

Q3

Q4

Q1

Q2

Apr-Jun I/S

Jul-Sep I/S

Oct-Dec I/S

Jan-Mar I/S

Apr-Jun I/S

Jul-Sep I/S

Jan-Mar I/S

Apr-Jun I/S

Jul-Sep I/S

Oct-Dec I/S

Jan-Mar I/S

Apr-Jun I/S*1. SMS fiscal year ends in March, while MIMS fiscal year ends in December.
© SMS Co., Ltd.

・・・

・・・

78

2 Business Portfolio - Career*1 *2

SubSegment

Elderly
Care
CareerCategory
Servicesfor careworkers

Services
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 dietitians

RAG *3 for childcare workers

RAG *3 for
Judo therapists etc.

Temporary staffing forcare workers

Elderly carecertification course

Certification course
information

OthersRAG*3
services
MedicalCare
CareerRAD *3 for nurses

OthersNational examinationreference book for Judotherapists etc.

RAG *3 for radiological
technologists

RAG *3 for medical
technologists

Web community forRAD *3 for newly-graduated
Scholarship information portal nurses and nurse students
nursesRAG *3 for clinical engineers

RAD *3 for
Judo therapists etc.

HR solution
for hospitals*1. As of October 2021
*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© SMS Co., Ltd.

79

2 Business Portfolio*1 - Kaipoke/Overseas/New Business

Segment

KaipokeOverseas

ServicesManagement support platform
for elderly care operators

Research and information
Information portal foron the aging society
management of elderly care operators

Drug information service forhealthcare professionals andinstitutions

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

Preventive solution forlifestyle-related diseases

New Business(Healthcare)

New Business(Senior life)

Medical ad services（Philippines, Indonesia, Malaysia）

Personalized
anti-smoking solution

Remote industrial
health service

Information portal of dementia

Solution for dementia
prevention
Web community for
dietitians

Preventive solution for
elderly care turnoverWeb community for people
struggling with elderly careHome-delivered meals
search site

Health maintenance /promotion
support for women

Information portal of
housing for the elderly

Information portalof industrial
health service

Comprehensive information
service on housing

Habitual support for
dementia prevention

Information portal of
funeral companies

Web community forcare managers* 1. As of October 2021
© SMS Co., Ltd.

Health guidance
solution

Career related service for nurses(South Korea)

80

2 History of Service Launches 1/5
-FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

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

Temporary staffing for care workers: Kaigo Job Partners Dec.2016*1. RAD: Recruiting ads service RAG: Recruiting agent service© SMS Co., Ltd.

81

2 History of Service Launches 2/5
-FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

RAG *1 for nurses: Nurse Jinzai-bank Sep. 2005
RAD *1 for nurses: Nurse-senka Kyujin-navi Jul. 2006

Web community for nurses and nurse students: Nurse-senka Community Aug. 2006

Medical Care Career

RAG *1 for doctors: M3 Career Agent Aug. 2006
RAG *1 for pharmacists: Yaku Kyari Agent Apr. 2007

Company split and succeeded to M3
career at the end of Dec. 2009

RAD *1 for newly-graduated nurses: 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*1. RAD: Recruiting ads service RAG: Recruiting agent service© SMS Co., Ltd.

82

2 History of Service Launches 3/5

Elderly Care Operators

-FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Management support service for elderly 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

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

Medical ad services Jan. 2015

Drug information service for healthcare professionals and institutions: MIMS Oct. 2015

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

© SMS Co., Ltd.

83

2 History of Service Launches 4/5~FY05 FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Web community for dietitians: Eichie Jun. 2011

Information portal of dementia: Ninchisho Net Aug. 2011

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

Personalized anti-smoking solution: 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

© SMS Co., Ltd.

84

2 History of Service Launches 5/5
-FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Web community for care managers: Care Mane.com Sep. 2006

New Business (Senior Life)Web community for people struggling with elderly care: Anshin Kaigo Jun. 2009

Information portal of housing for the elderly: Kaigo DB Apr. 2013

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.

85

2 Dividends
DPS (JPY)*1

Payout ratio *2

16.3%

15.6%

17.2%

16.8%
15.5%

14.8%

15.5%

13.6%
11.6%

9.5

12.3%
8.5

12.5%
7.5
6.5

5.5
6.8%

1.25

1.5

FY10

FY11

2.0

3.5

3.5

FY14

FY15

2.5

0.625
FY09

FY12

FY13

*1. Past stock splits are taken into account for the DPS calculation.
*2. Payout Ratio = DPS / EPS© SMS Co., Ltd.

FY16

FY17

FY18

FY19

FY20

86

2 Historical Financial Results(JPY million)

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

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

26,61130,83635,14035,960Operating
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

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

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

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

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

46,08747,46750,99649,444

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

26,785Net 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

15,53919,39822,658

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

(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

DPS*1 (JPY)

-

-

-

-

-

0.625

0.625

1.25

1.5

2

2.5

3.5

3.5

5.5

6.5

7.5

8.5

9.5

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

-

-

-

-

-

-

-

-

-

-

177.1

514.5

1,150.3

1,057.5

682.8

402.3

263.6

317.8

Equity Ratio (%)
ROE (%)

TSR*1*2 (%)*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© SMS Co., Ltd.

87

2 Number of Employees and Shareholder Composition
Number of Employees

As of September 30, 2021 :Employees (consolidated)

3,167

Japan

2,252
915

Overseas

Shareholder Composition*1
As of September 30, 2021:

Individual Others
Investors 5%
5%

Number of shareholders 6,204

Founder
19%

Foreign
Institutional
Investors
45%*1. Pie chart shows the ratio of number of stocks held by each category.
© SMS Co., Ltd.

Directors, Employees andShareholding associations
1%

Domestic
Institutional
Investors
25%

88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, “the Company”) based on current expectations and assumptions in light of the information available to the Company as of
September 30, 2021. These forward-looking statements are not guarantees 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 elderly care, medical care and other client information andoperation of the Company’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, elderly care and medical 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 theacquisition 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.
*1. https://www.bm-sms.co.jp/en/ir/policy/risk/

For any inquiries on the materials, please contact below:
Corporate Planning Department
E-mail: irinfo@bm-sms.co.jp
Phone: +81-3-6721-2403© SMS Co., Ltd.

89