SMS Co., Ltd. (2175 TSE Prime Market)
Earnings Presentation for Investors, Q3 FY03/2024
January 31, 2024

© SMS Co., Ltd.

1

Table of Contents© SMS Co., Ltd.

01

Q3 FY03/2024 Consolidated Financial Results

p.3

02

References

p.10

Mission and Strategy

p.11

Appendix

p.74

2

01

Q3 FY03/2024 Consolidated Financial Results© SMS Co., Ltd.

3

Historical Financial Results and FY03/24 GuidanceExpect to achieve growth in both sales and profits for the 20th consecutive year since our establishment.

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

Ordinary Income

54.8
45.7
35.1

36.0

30.8
23.1
19.1
15.1

0.1

(0.0)

1.5
0.4
0.8
2.7
0.4
0.3
0.1
0.0

10.2
8.7
2.0
7.6
7.2
1.5
1.7
5.2 1.2 1.3

12.0
2.3

2.7

3.5

4.4

26.6
5.0

6.0

6.4

6.7

38.9
8.8

10.0

7.7

(Guidance)© SMS Co., Ltd.

4

FY03/24 Consolidated Financial Results (Q3)
Sales increased YoY, while profits decreased due to upfront investments.
• Returned to our pre-COVID growth trajectory with the recovery of Career Business: continued investments until Q3
and substantial profit growth in Q4.
• Marked steady progress toward the FY03/24 guidance despite the weak YoY profits growth as of Q3 due toproactive investments mainly in hiring career partners.
Q3 FY03/24 [JPY million]© SMS Co., Ltd.

Q3 FY03/23
ActualQ3 FY03/24
ActualYoY
ChangeNet Sales

33,43239,357+18%

Operating Income

5,043

4,945

(2%)

Ordinary Income

6,398

6,171

(4%)

Net Income

4,562

4,376

(4%)
5

FY03/24 Career Segment (Q3)
• Grew significantly with a strong demand from business operators looking to hire professionals.
• Marked steady progress toward the FY03/24 guidance and hired more career partners at a faster pace than originallyplanned.

Sales, Q3 FY03/24 [JPY million]© SMS Co., Ltd.

Q3 FY03/23
ActualQ3 FY03/24
ActualYoY
ChangeElderly Care Career

9,197

11,869+29%

Medical Care Career

11,301

12,472

+10%

Total

20,49924,342+19%

6

FY03/24 Elderly Care Operators Segment (Kaipoke, Q3)• The number of Kaipoke memberships increased steadily.

– 48,800 service offices (28,450 locations)*1 as of January 1, 2024

– Q3 YTD membership increase: 3,600 service offices (2,000 locations)• Sales of optional add-ons such as additional tablets and smartphones increased.

Sales, Q3 FY03/24 [JPY million]

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

Q3 FY03/23
ActualQ3 FY03/24
ActualYoY
Change

6,192

7,168

+16%

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

FY03/24 Overseas Segment (Q3*1)• Medical Platform Business progressed firmly. While the lead time for sales recognition was prolonged due to therecovery in the use of non-digital services such as on-site events, projects have been delivered steadily since Q3.
• Global Career Business grew significantly driven by the increasing HCP*2 introductions in the countries where wehave already operated, as well as the contribution of CWC/CF (Germany), which we acquired in December 2022.
Sales, Q3 FY03/24 [JPY million]

Overseas© SMS Co., Ltd.

Q3 FY03/23
ActualQ3 FY03/24
ActualYoY
Change

5,163

5,920

+15%

1. Income statement of MIMS group is consolidated with a three-month delay and the Q3 YTD results are for January to September. (Please refer to p.81)
2. Healthcare professionals

8Topic: Revision to Dividend Forecast• The year-end cash dividend per share for FY03/24: 20.0 yen (increased by 5.0 yen compared with FY03/23)• Dividend payout ratio*1 based on the net income guidance for FY03/24: 24.5%• Total payout ratio*2, including the share repurchase executed in November: 52.5%
DPS (JPY) *3

24.5%

Dividend payout ratio
20.4%

11.6% 12.3%

13.6%

14.8%

16.3% 16.8%

15.6%

12.5%
5.5
6.8%
0.625

© SMS Co., Ltd.

1.25

1.5

2.0

2.5

3.5

6.5

15.5% 15.5%

7.5

8.5

17.2% 16.9%

9.5

20.0

15.0

10.5

3.5

1. Dividend payout ratio = DPS / EPS *Forecasted figures for FY03/24
2. Total payout ratio = (Total dividends to be paid + Total share repurchased) / Net income
3. Past stock splits are taken into account for the DPS calculation.

*Forecasted figures for dividends and net income

902

References© SMS Co., Ltd.

10

Mission and Strategy© SMS Co., Ltd.

11

Mission© SMS Co., Ltd.

12

Group Mission

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

© SMS Co., Ltd.

13

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

Healthcare© SMS Co., Ltd.

Medical Care

Elderly Care

Senior Life

14

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 care operators.

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

© SMS Co., Ltd.

Professionals

Operators

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

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

15

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 Care

Senior Life

Professionals

Operators

Business Areas

End users© SMS Co., Ltd.

16

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

17

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%

18

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 care services

Issue
2

More severe burden on the working generation

Issue
3

Difficulty in solving problems related to living in an aging society

19Issue 1: Difficulty in sustaining high-quality medical care and 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 is making it difficult to sustain high-quality medical care andelderly care services.
(in JPY trillions)

Medical care

Medical and elderly
care expenses
forecast*1

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

10.7

Elderly care

24.6
14.6

39.2

48.7

2018

2025

68.3

2040

60–270

?

220

650

1. Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”
2. MHLW, “Subcommittee on supply and demand of nursing staff, study group on supply and demand of medical care workers”
3. MHLW, “Required number of elderly care staff based on the 8th plan for long-term care insurance”(in thousands)

20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, and elderly care, as well as the declining working-age population who cover these expenses.

PensionSocial security
expenses forecast*1

Medical care

Elderly care

106.6
10.7
39.2

x1.6
123.2
14.6

166.1
24.6
68.3

48.7

42.6
56.7

59.9

73.2

1990

2018

2025

2040

5.8 ppl2.1 ppl2.0 ppl

1.6 ppl18.6
24.0(in JPY trillions)

Working 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”

21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”

22

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 distributionof medical care and elderly care professionals.

Issue
1

Difficulty in sustaining highquality medical care and elderly
care services

Issue
2

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

Issue
3

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

• Improve the management of medical care andelderly care operators.

23

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

Healthcare

Professionals

Operators

Medical Care

Issue
1
Issue
2
Healthcare
Business

Elderly Care

CareerBusiness

Issue
1

Elderly Care
Operators Business

Senior Life

Issue
3
Senior Life
Business

End users© SMS Co., Ltd.

24

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 careservices and live with peace ofmind;• 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 by
improving their operational
efficiency and management.
As a result, they can provide quality
services to end users through skilled
staff members and goodmanagement.

25

Growth Track© SMS Co., Ltd.

26

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

27

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

45.7
2.2

5%

• Recruiting service for medical care professionals

7.8

17%

8.4

18%

12.7

28%

Career Business – Elderly Care Career• Recruiting service for elderly care professionals
Kaipoke

26.6
1.3
5.1

19%

• Management support platform for elderly care operators

3.3

13%

5.8

22%

11.0

41%

10.2

• Marketing support service for medical-related companies• Clinical decision support• Domestic/cross-border recruiting service of HCPs*1

1.5

15%

7.4

72%

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

Others 13%

Overseas Business1. Healthcare professionals

FY03/13
Medical Care Career
Overseas Business

5%

FY03/18
Elderly Care Career
New Business

14.6

32%

FY03/23
Kaipoke28

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.

Future29

Career Strategy© SMS Co., Ltd.

30

Issue 1: Difficulty in sustaining high-quality medical care and 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 is making it difficult to sustain high-quality medical care andelderly care services.
(in JPY trillions)

Medical care

Medical and elderly
care expenses
forecast*1

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

10.7

Elderly care

24.6
14.6

39.2

48.7

2018

2025

68.3

2040

60–270

?

220

650

1. Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”
2. MHLW, “Subcommittee on supply and demand of nursing staff, study group on supply and demand of medical care workers”
3. MHLW, “Required number of elderly care staff based on the 8th plan for long-term care insurance”(in thousands)

31

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

Healthcare

Medical Care

Professionals

Operators

Issue
1
Issue
2
Healthcare
Business

End users© SMS Co., Ltd.

Elderly Care

CareerBusiness

Senior Life

Issue
1

Elderly Care
Operators Business

Issue
3
Senior Life
Business

Issue: Difficulty in sustaining high-quality medical careand elderly care services
Solution: Solve labor shortages and uneven distributionof medical care and elderly care professionals
32

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

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

Shortage: 0.22

1.75–1.82

2011 2012 2013 2014 2015 2016 2017 2018 2019

2025

1.9

1.95 1.98 2.01

2011 2012 2013 2014 2015 2016 2017 2018 2019

Jobs-to-applicants ratio of nurses*3

Jobs-to-applicants ratio of care workers*3

5.0

5.0

4.0

4.0
Nurses

1.0

2.21 2.15

All job types

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

2025 2040

Care workers

3.0
2.0

2.0

© SMS Co., Ltd.

1.71 1.77 1.84
1.63
1.51

0.65

17.0% 17.8% 16.1% 17.0%16.6%16.5%16.5%16.7% 16.2%

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

3.0

2.80
Demand: 2.43

All job types

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

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 8th plan for long-term care insurance”, Turnover rate: Care Work Foundation "Care Work Survey"
3. MHLW, "Employment referrals for general workers”

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

© SMS Co., Ltd.

34

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

35

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

36

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 14.6 billion*2*3: Sales for FY03/23

Sales of Elderly Care Career: JPY 12.7 billion*3: Estimates of the future sales
RAG for care workers
RAG for childcare
workers
School

RAG for other co-medicals

RAD for care workers

RAG for nurses
RAG/RAD for Judo therapists etc.

RAD fornurses*¹© SMS Co., Ltd.

RAD for newlygraduated nurses

1. RAG: Recruiting Agent service RAD: Recruiting Ads service
2. Career businesses for doctors and pharmacists are operated by M3 Career, Inc., a JV between M3, Inc.(51%) and SMS (49%).
3. Sales for FY03/23

RAG for PT/OT/ST

RAG for care managers

37

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

38

Issue 1: Difficulty in sustaining high-quality medical care and 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 is making it difficult to sustain high-quality medical care andelderly care services.
(in JPY trillions)

Medical care

Medical and elderly
care expenses
forecast*1

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

10.7

Elderly care

24.6
14.6

39.2

48.7

2018

2025

68.3

2040

60–270

?

220

650

1. Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040”
2. MHLW, “Subcommittee on supply and demand of nursing staff, study group on supply and demand of medical care workers”
3. MHLW, “Required number of elderly care staff based on the 8th plan for long-term care insurance”(in thousands)

39

Solution for Issue 1 in Elderly Care Operators BusinessContribute to solving the social issue “difficulty in sustaining high-quality medical care and elderly care services” byimproving the management of elderly 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 Care

CareerBusiness

Issue
1

Elderly Care
Operators Business

Senior Life

Issue
3
Senior Life
Business

Issue: Difficulty in sustaining high-quality
medical care and elderly care services
Solution: Improve the management of elderly
care operators
40

Business Environment of Kaipoke
As the population ages, the number of elderly care operators continues to increase, exceeding 250,000 offices.

The number of elderly care service offices and the elderly population*1 (in thousands)# of elderly care service offices CAGR: approx. 3.5%
The elderly population
29,246 29,752

168© SMS Co., Ltd.

176

30,793

186

31,898199

33,000 33,790

210

223

35,578 35,885 36,027
34,591 35,152

233

239

244

248

251

36,214 36,236

254

258

179

186

189

192

194

197

200

129

135

143

153

162

172

39

41

43

46

48

51

54

54

55

56

57

57

58

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

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 notcover*2• Commuting care for elderly withdementia• Short stay
• Daily life care for elderly in
specific facilities• Small-sized multifunctional inhome care
• Facilities etc.

1. Number of elderly care service offices: MHLW ”Statistics of Long-term Care Benefit Expenditures” (March of each year), The elderly population: MIC “Census”, “Population estimates”
2. As of January 2024

41

Business Environment of Kaipoke• 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

42

Mission of Kaipoke

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

© SMS Co., Ltd.

43

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 (Businesssuccession), etc., on top of the insurance claim service that is essential for elderly 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 caremanagement data

Accumulationof information

44

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

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

46

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, and elderly care, as well as the declining working-age population who cover these expenses.

PensionSocial security
expenses forecast*1

Medical care

Elderly care

106.6
10.7
39.2

x1.6
123.2
14.6

166.1
24.6
68.3

48.7

42.6
56.7

59.9

73.2

1990

2018

2025

2040

5.8 ppl2.1 ppl2.0 ppl

1.6 ppl18.6
24.0(in JPY trillions)

Working 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”

47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 Care

CareerBusiness

Issue
1

Elderly 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
Business48

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. 5.26 million

Approx. 3.29 million

Mental disorder

Number of patientswith mood disorders*3
Approx. 1.28 million

Number of
hypertensive patients*3
Approx. 9.94 million© SMS Co., Ltd.

1. Quality of life
2. Subjects are 40 – 74 years old. MHLW, "2021 Implementation of specified health checkups and specific health guidance"
3. MHLW, "2017 Patient survey"

49

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 life50

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.

51

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

52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

53

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.

54

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

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

56

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”

57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 Care

CareerBusiness

Issue
1

Elderly 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

58

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.

59

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
60

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

＋α
Food

End-of-life planning

Expand category coverage61

Overseas Strategy© SMS Co., Ltd.

62

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.

63Medical Platform Business© SMS Co., Ltd.

64

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
18.8%© SMS Co., Ltd.

1. WHO “Global Health Expenditure Database” (2020)

5.1%

4.7%

4.6%

4.4%

4.1%

3.4%

3.0%

MyanmarThailand

Malaysia

Indonesia

India

5.6%

VietnamSingapore

Japan

U.K.

U.S.

6.1%

Philippines

10.9%

China

12.0%

65

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.

66

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
Pharmaceuticalcompanies
Medical device
manufacturers

HCPs
Information sharing
including issues/needs
regarding marketing

Other healthcare
manufacturers
Industry associations(doctor/academy)
Government agencies+αSolution/support
for marketing issues

Symposium/ Seminar
Academic paper

Localized valuable
information

Doctors
Dentists

Online CME*1

Pharmacists

Medical care news

NursesClinical guideline

Students

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

67

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

68Global Career Business© SMS Co., Ltd.

69

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)

Australia

120(2030)

2.5

South Korea

160(2030)

0.0

Saudi Arabia

100(2030)

7.5

5.0© SMS Co., Ltd.

2000

2005

2010

2015

2020

1. WHO “Global Health Expenditure Database” (FX rates: 2020)
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"70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.

71

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.

72

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

73

Appendix© SMS Co., Ltd.

74

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
75

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.

76

MIMS Group Profile
MIMS group global coverage© SMS Co., Ltd.

MIMS group profile
Founded

1963

Business• Medical Platform• Global Career

Globalcoverage

18 countries and regions,mainly in APAC

Number ofmemberships

3.17 million

Acquisition
date

October 7, 201577

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

78

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

79

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.
80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

81

Business Portfolio – Career*1*2
Sub-segment

Elderly Care
CareerCategory
Services for care
workers

OthersServices
RAD*3 for care workers

Elderly carecertification course

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

RAD*3 for nurses

RAD*3 for newly-graduatednursesRAG*3 for medical
technologists

Certification course
information

RAG*3 for clinicalengineers

RAG*3 for childcare
workers

RAG*3 services
MedicalCare
CareerOthers© SMS Co., Ltd.

National examination reference
book for Judo therapists etc.

Scholarship
information portal

Web community fornurses and nurse
students

RAD*3 for
Judo therapists etc.

HR solution
for hospitals

1. As of January 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

82Business Portfolio*1 – Kaipoke/Overseas/New Business
Segment

Services

KaipokeManagement support platform
for elderly care operators

Overseas

Drug information service forhealthcare professionals andinstitutions

Preventive solution forlifestyle-related diseases

New Business(Healthcare)

New Business(Senior life)

1. As of January 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

Information portal of
housing 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

83

History of Service Launches – Elderly Care Career
~FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

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

84

History of Service Launches – Medical Care Career
~FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

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 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© SMS Co., Ltd.

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

85

History of Service Launches – Kaipoke/Overseas

Elderly Care Operators

~FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

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

(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

86History of Service Launches – New Business (Healthcare)
~FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

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.

87

History of Service Launches – New Business (Senior Life)
~FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

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

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.

88

Dividends
DPS (JPY) *1

Payout ratio *2

13.6%
11.6%

14.8%

20.4%

16.3%

15.6%

17.2% 16.9%

16.8%
15.5%

5.5
6.8%

0.625
FY09

© SMS Co., Ltd.

15.5%

12.3%
12.5%

1.25

1.5

FY10

FY11

2.0

FY12

2.5

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

7.5

FY18

15.0

8.5

FY19

9.5

FY20

10.5

FY21

FY22

89

Historical Financial Results(in JPY millions)
FY03

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

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

26,61130,83635,14035,96038,89945,667

Operating
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

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

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

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

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

46,08747,46750,99649,44456,58565,098

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

26,677

Net 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

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

(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

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

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

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

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

FY04

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

90Number of Employees and Shareholder Composition
Number of Employees

Shareholder Composition*1

As of December 31, 2023:

As of September 30, 2023:
Number of shareholders 8,804

Category# of Employees

Consolidated

4,202

Japan

3,092

Overseas

1,110

Directors, Employees andShareholding associations
1%

Others5%

Individual Investors
7%

Founder
19%

Foreign
Institutional
Investors
40%

Domestic Institutional
Investors
28%© SMS Co., Ltd.

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

91

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 December 31, 2023. 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 and operation 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 andmedical 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/

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