Slide 1: Earnings Presentation for Investors, Q1 FY03/2027
SMS Co., Ltd. (2175 TSE Prime Market) Earnings Presentation for Investors, Q1 FY03/2027 July 29, 2026 1 © SMS Co., Ltd.
Slide 2: Table of Contents
Table of Contents 01 Q1 FY03/2027 Consolidated Financial Results p.5 02 Corporate Value Improvement Committee p.15 03 References p.21 Mission and Business Overview p.22 Appendix p.76 2 © SMS Co., Ltd.
Slide 3: Glossary of Terms and Definitions
Glossary of Terms and Definitions Terms Definitions Related Segment RAG A business model in which a third-party recruitment agent acts as an intermediary to match Career (Recruiting Agent service) employers with job seekers. CP (Career Partner) Agents responsible for matching in RAG. Career Net sale
Slide 4: Highlights
Highlights – Net sales: ¥20.2 billion (+8% YoY), EBITDA: ¥5.1 billion (+10% YoY), Operating income: ¥4.3 billion (+19% YoY) – Operating income grew significantly as amortization decreased following the FY03/26 impairment of intangible assets in the Overseas Business. – Career: Steady growth, with ne
Slide 5: Q1 FY03/2027 Consolidated Financial Results
01 Q1 FY03/2027 Consolidated Financial Results 5 © SMS Co., Ltd.
Slide 6: FY03/27 Consolidated Financial Results (Q1)
FY03/27 Consolidated Financial Results (Q1) • In line with the initial plan, achieved YoY growth in net sales and in profit down to the ordinary income line.*1 • Plan to continue investing, including active hiring, from Q2 onward, and, for the full year, expect profit to land in line with the initia
Slide 7: Reference: Major Expenses
Reference: Major Expenses • “Depreciation & amortization” decreased following the FY03/26 impairment of intangible assets in the Overseas Business. • “Others” increased, mainly due to higher recruiting costs in the Career and Elderly/Disability Care Management Support Segments. Q1 FY03/26 Q1 FY03/27
Slide 8: FY03/27 Career Segment (Q1)
FY03/27 Career Segment (Q1) • Net sales and EBITDA both grew, supported by strong hiring demand from medical, elderly, and disability care business operators. • In RAG, continued improvements to the matching process—including the use of AI—drove steady net sales growth, while other areas were negati
Slide 9: Key KPIs: Trends in Number of CPs and Productivity
Key KPIs: Trends in Number of CPs and Productivity • With an eye on medium- to long-term growth, we hired actively year on year.*1 Even as the share of newly hired CPs in the total rose, productivity*2 continued to run above the prior-year level. Number of CPs (Quarterly Avg.) Number of CPs Hired Pr
Slide 10: Topic: Agency Ratings by Hiring Organizations — Selected in All 4 Categories
Topic: Agency Ratings by Hiring Organizations — Selected in All 4 Categories • In a service-quality (satisfaction) survey of hiring organizations conducted as a project commissioned by the Ministry of Health, Labour and Welfare,*1 we were selected as one of the top three companies across all four ca
Slide 11: FY03/27 Elderly/Disability Care Management Support Segment (Q1)
FY03/27 Elderly/Disability Care Management Support Segment (Q1) • Although a shift in the timing of deal closings in the M&A matching business had some impact, net sales grew steadily, driven by increases in memberships of Kaipoke and Kabenashi Cloud and the expanded use of paid optional services—su
Slide 12: Key KPIs: Trends in Number of Customers, ARPA, and ARR
Key KPIs: Trends in Number of Customers, ARPA, and ARR • The number of corporate accounts for Kaipoke and Kabenashi Cloud rose 8% YoY, and ARPA*1 rose 4% YoY, steadily expanding recurring net sales. • ARR*2 grew 13% YoY, to ¥13.5 billion. Corporate accounts Service offices*3 ARPA ARR (end of quarter
Slide 13: FY03/27 Overseas Segment (Q1)
FY03/27 Overseas Segment (Q1*1) • While the Medical Platform Business continued to be affected by reduced marketing budgets at some clients, and the Global Career Business by the worsening situation in the Middle East, the Segment grew year on year. • As we work to improve our earnings structure, we
Slide 14: Reference: Segment Information
Reference: Segment Information [¥ million] Q1 FY03/26 Q1 FY03/27 YoY Change Net sales 18,672 20,212 +8% Career 13,070 14,110 +8% Elderly/Disability Care Management 3,175 3,474 +9% Support Overseas 1,535 1,595 +4% Others 890 1,031 +16% EBITDA 4,738 5,190 +10% Career 4,823 5,310 +10% Elderly/Disabilit
Slide 15: Corporate Value Improvement Committee
02 Corporate Value Improvement Committee 15 © SMS Co., Ltd.
Slide 16: Corporate Value Improvement Committee
Corporate Value Improvement Committee • Established the Corporate Value Improvement Committee, composed of Inside and Outside Directors, in July. • The Committee serves to integrate key issues: it translates feedback from shareholders and investors into management priorities for enhancing corporate
Slide 17: Composition of the Working Groups
Composition of the Working Groups • Key management issues are examined in four working groups: "Business Portfolio," "Growth Strategy," "Management Structure & Governance," and "IR & Capital Markets." • In each working group's deliberations, we conduct objective verification—including by engaging ex
Slide 18: Upcoming Schedule
Upcoming Schedule • Plan to implement reforms in a phased manner, with no area exempt. As for the roadmap, following verification by the Corporate Value Improvement Committee, we intend to disclose the medium-term management plan—an update to the roadmap—by the FY03/27 full-year results announcement
Slide 19: Progress of Initiatives to Enhance Corporate Value
Progress of Initiatives to Enhance Corporate Value • Initiatives to enhance corporate value are progressing steadily in three areas: Business Portfolio, Management Structure & Governance, and IR & Capital Markets. Business Portfolio (WG1) area: Exited or decided to exit several businesses in Q1. • S
Slide 20: Q2 Deliberations and Actions at the Corporate Value Improvement Committee (Excerpt)
Q2 Deliberations and Actions at the Corporate Value Improvement Committee (Excerpt) Business Portfolio (WG1) area: Establishing business evaluation criteria • Designing and enhancing the business evaluation framework: determining WACC/ROIC, evaluation criteria, and hurdle rates. • Determining evalua
Slide 21: References
03 References 21 © SMS Co., Ltd.
Slide 22: Mission and Business Overview
Mission and Business Overview 22 © SMS Co., Ltd.
Slide 23: Group Mission
Group Mission We aim to improve people’s quality of life by providing information infrastructure for an aging society. 23 © SMS Co., Ltd.
Slide 24: Aging Society
Aging Society Define our business domains in an aging society as Medical Care, Elderly/Disability Care, Healthcare, and Senior Life. Elderly/Disability Healthcare Medical Care Care Senior Life 24 © SMS Co., Ltd.
Slide 25: Information Infrastructure
Information Infrastructure Define information infrastructure as a platform to connect those to whom we provide value: end users such as patients, the elderly and their families; professionals such as nurses and elderly care workers; and business operators such as hospitals and elderly/disability car
Slide 26: Business Areas
Business Areas • Set our business areas based on the four domains required for an aging society and the three stakeholders to whom we provide value. • Build the information infrastructure by developing and nurturing businesses in each business area. Elderly/Disability Healthcare Medical Care Senior
Slide 27: Issues in an Aging Society and Our Solutions
Issues in an Aging Society and Our Solutions 27 © SMS Co., Ltd.
Slide 28: An Unprecedented Era of Low Birth Rate, Aging and Population Decline
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,
Slide 29: Three Critical Issues Faced by an Aging Society
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. Issue Difficulty in sustaining high-q
Slide 30: Issue 1: Difficulty in Sustaining High-Quality Medical Care and Elderly/Disability Care Services
Issue 1: Difficulty in sustaining high-quality medical care and elderly/disability care services While the demand for medical care and elderly/disability care services is increasing due to the population aging, a growing shortage of medical care and elderly care professionals is making it difficult
Slide 31: Issue 2: More Severe Burden on the Working Generation
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 for pensions, medical care, elderly care, and other welfare services, as well as the declining working-age population who cover these exp
Slide 32: Issue 3: Difficulty in Solving Problems Related to Living in an Aging Society
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 to living in an aging society is insufficient in terms of quality and quantity, and the future labor shortage w
Slide 33: Our Solutions for Issues in an Aging Society
Our Solutions for Issues in an Aging Society Address the social issues in an aging society by establishing specific solutions targeting each social issue and building information infrastructure. Social issues in an aging society Our Solutions • Solve labor shortages and uneven distribution of Issue
Slide 34: Strategic Business Areas
Strategic Business Areas Aim to solve the three critical issues in an aging society by defining our strategic business areas as Career, Elderly/Disability Care Management Support, Healthcare, and Senior Life, and by strategically developing and nurturing businesses to address the issues. Elderly/Dis
Slide 35: Realization of the Group Mission
Realization of the Group Mission Contribute to improving people's quality of life in an aging society by building information infrastructure and providing value to end users, professionals, and operators. End users End users can: • continuously enjoy high-quality Professionals medical care and elder
Slide 36: Growth Track
Growth Track 36 © SMS Co., Ltd.
Slide 37: Business Portfolio
Business Portfolio • Develop diverse services centered on three segments: "Career," “Elderly/Disability Care Management Support," and "Overseas." Business Descriptions Sales by Segment (FY03/26) Career - RAG, DR / Others • RAG for nurses: "Nurse-senka Tenshoku" • RAG for care workers: “Kaigo Job Age
Slide 38: Our History
Our History • Since our establishment, the recruiting agent service (RAG) for nurses has driven our growth. • Expanded businesses including RAG for elderly care workers and childcare workers, Kaipoke, and the Overseas business. • We will achieve further growth by developing and nurturing new busines
Slide 39: Location
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 17 countries and regions, mainly in Japan and APAC. Japan Vietnam South Korea Philippines China India Hong Kong Australia Taiwan New Zealand Sin
Slide 40: Career Business
Career Business 40 © SMS Co., Ltd.
Slide 41: Issue 1: Difficulty in Sustaining High-Quality Medical Care and Elderly/Disability Care Services (Recap)
Issue 1: Difficulty in sustaining high-quality medical care and elderly/disability care services (Recap) While the demand for medical care and elderly/disability care services is increasing due to the population aging, a growing shortage of medical care and elderly care professionals is making it di
Slide 42: Solution for Issue 1 in Career Business
Solution for Issue 1 in Career Business Contribute to solving the social issue “difficulty in sustaining high-quality medical care and elderly/disability care services” by solving labor shortages and uneven workforce distribution through optimized matching of professionals and operators. Elderly/Dis
Slide 43: Shortage of Professionals
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 an additional 570,000 care workers required by 2040 compared with 2022. Number of nurses / t
Slide 44: Business Model of Career Business
Business Model of Career Business Business model of RAG Receive a fee from a hiring business operator, calculated as a certain percentage of an annual salary, depending on the occupation, when an applicant joins. Professionals Attracting job seekers Sales activity Operators Website Registration Job
Slide 45: Elderly/Disability Care Management Support Business
Elderly/Disability Care Management Support Business 45 © SMS Co., Ltd.
Slide 46: Issue 1: Difficulty in Sustaining High-Quality Medical Care and Elderly/Disability Care Services (Recap)
Issue 1: Difficulty in sustaining high-quality medical care and elderly/disability care services (Recap) While the demand for medical care and elderly/disability care services is increasing due to the population aging, a growing shortage of medical care and elderly care professionals is making it di
Slide 47: Solution for Issue 1 in Elderly/Disability Care Management Support Business
Solution for Issue 1 in Elderly/Disability Care Management Support Business Contribute to solving the social issue “difficulty in sustaining high-quality medical care and elderly/disability care services” by improving the management of elderly/disability care operators through a management support p
Slide 48: Business Environment of Elderly Care Services
Business Environment of Elderly Care Services As the population ages, the number of elderly care operators continues to increase, amounting to 270,000 offices. Number of people certified for long-term Number of elderly care service offices*2 care/support need*1 (in thousand) (in thousand) Average an
Slide 49: Business Environment of Disability Welfare Services
Business Environment of Disability Welfare Services The number of users of welfare services for persons with disabilities is on the rise due to better understanding of disabilities and easier access to diagnosis, and the number of service offices is continuously increasing. Number of users of welfar
Slide 50: The Environment Surrounding Elderly/Disability Care Operators
The Environment Surrounding Elderly/Disability Care Operators • Three-quarters of Elderly/Disability Care operators are small-scale corporations with 50 or fewer employees. • Facing operational and management issues such as a heavy burden of indirect tasks like paperwork, labor shortages, weak purch
Slide 51: Management Support Platform
Management Support Platform • Kaipoke is a management support platform provided in the form of SaaS, which realizes one-stop support for the management of elderly/disability care operators. • Offer more than 40 services that support operations, recruitment, purchasing, finance, back office, M&A (Bus
Slide 52: Kaipoke's Main Services
Kaipoke’s Main Services Subscription-based management support platform providing more than 40 services as a package*1 • Elderly care operators can efficiently claim long-term care insurance reimbursement by managing Insurance users' planned and actual service usage and generating the corresponding b
Slide 53: Kaipoke and Kabenashi Cloud will be further strengthened by AI
Kaipoke and Kabenashi Cloud will be further strengthened by AI • With a structurally low risk of being replaced by AI, Kaipoke and Kabenashi Cloud can grow further by deploying AI features based on their accumulated data. Regulatory requirements act as barriers A structure highly resistant to switch
Slide 54: Healthcare Business
Healthcare Business 54 © SMS Co., Ltd.
Slide 55: Issue 2: More Severe Burden on the Working Generation (Recap)
Issue 2: More severe burden on the working generation (Recap) The burden on the working generation will become more serious due to the increasing social security expenses for pensions, medical care, elderly care, and other welfare services, as well as the declining working-age population who cover t
Slide 56: Solution for Issue 2 in Healthcare Business
Solution for Issue 2 in Healthcare Business Contribute to solving the social issue “more severe burden on the working generation” by increasing the number of healthy people in the work force through a platform that supports “health and productivity management” of companies. Elderly/Disability Health
Slide 57: Declining QOL and Productivity Caused by Physical/Mental Disorders
Declining QOL*1 and Productivity Caused by Physical/Mental Disorders • Among the working generation, there are many patients/potential patients with lifestyle-related diseases, which often progress to critical illnesses such as diabetes. • Mental disorders caused by overworking or workplace stress a
Slide 58: Health and Productivity Management Support Platform
Health and Productivity Management Support Platform • Provide digital health services*1 for companies and health insurance associations. • The services are based on scientific evidence and provided by seasoned healthcare professionals (HCPs) including doctors, nurses, and registered dietitians. Heal
Slide 59: Remote Health Guidance Service
Remote Health Guidance Service • Provide specific health guidance service for HIAs*1 aiming to prevent lifestyle-related diseases of employees and their families. The service is provided by registered dietitians and based on the results of verification projects conducted with MHLW. • Remote service
Slide 60: Remote Industrial Health Service
Remote Industrial Health Service • Provide comprehensive support for industrial health operations in the human resources and labor departments of companies, including visits by industrial physicians, stress checks, and the establishment and operation of health committees. • Reduce the workload of HR
Slide 61: Our Strength
Our Strength Leveraging our strengths in healthcare professional (HCP) networks, ICT capabilities, and proven results from verification projects conducted with ministries and national agencies, we offer effective solutions with a reasonable price for prevention of lifestyle-related diseases and ment
Slide 62: Senior Life Business
Senior Life Business 62 © SMS Co., Ltd.
Slide 63: Issue 3: Difficulty in Solving Problems Related to Living in an Aging Society (Recap)
Issue 3: Difficulty in solving problems related to living in an aging society (Recap) • While services required in society are changing and expanding with the population aging, information related to living in an aging society is insufficient in terms of quality and quantity, and the future labor sh
Slide 64: Solution for Issue 3 in Senior Life Business
Solution for Issue 3 in Senior Life Business Contribute to solving the social issue of "difficulty in solving problems related to living in an aging society" by building a problem-solving platform that connects people facing worries or needs in their daily lives with advisors and services that can h
Slide 65: Problem-Solving Platform
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. • Refer service providers to solve problems related to specific categories such as housing, food, and end-of-life
Slide 66: Overseas Business
Overseas Business 66 © SMS Co., Ltd.
Slide 67: Overview of Overseas Segment
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 Business Structure Medical Marketing
Slide 68: Medical Platform Business
Medical Platform Business 68 © SMS Co., Ltd.
Slide 69: Issue: Low Availability of Medicines and Medical Devices, and Inadequate Quality of Medical Care in APAC
Issue: Low Availability of Medicines and Medical Devices, and 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
Slide 70: Medical Platform
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
Slide 71: Global Career Business
Global Career Business 71 © SMS Co., Ltd.
Slide 72: Issue: Global Shortage and Uneven Distribution of Healthcare Professionals
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 s
Slide 73: HCP Supply Platform
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 Healthcare HCPs Institutions U.K. U.K. Singapore Cross-border Ireland Germany Malaysia matching Australia Ireland South Korea Ne
Slide 74: Expansion of the Global Career Business
Expansion of the 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, to Europe and Oceania in 2019, and to Germany in 2022. Sep. Acquired Launched the Global Career Busi
Slide 75: Consolidation of MIMS Group Financial Results
Consolidation of MIMS Group Financial Results • The MIMS group is consolidated into the SMS group with a three-month lag. • The consolidated results for the period comprise the results of the SMS Group (excluding the MIMS Group) for April–March and those of the MIMS Group for January–December Jan. –
Slide 76: Appendix
Appendix 76 © SMS Co., Ltd.
Slide 77: Business Portfolio – Career
Business Portfolio*1 – Career*2 Segment Category Services RAG for care workers RAG for nurses RAG for childcare RAG for registered workers RAG for PT/OT/ST RAG for care managers, social dietitians/dietitians workers, and disability care workers RAG RAG for radiological RAG for medical RAG for clinic
Slide 78: Business Portfolio – Elderly/Disability Care Management Support, Overseas, Others
Business Portfolio*1 – Elderly/Disability Care Management Support, Overseas, Others Segment Services Management support platform Information portal Research and information Elderly/Disability for elderly/disability care for management of on the aging society operators elderly care operators Care Man
Slide 79: History of Service Launches – Career (RAG)
History of Service Launches – Career (RAG) ～FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 RAG for care managers, social workers, and disability care workers: Care Jinzai-bank May 2003 RAG for nurses: Nurse-senka Tenshoku Sep. 2005 (Renamed from Nurse
Slide 80: History of Service Launches – Career (DR / Others)
History of Service Launches – Career (DR / Others) ～FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Information service on qualification courses for elderly/medical care: Shikatoru Nov. 2003 Cross-occupational DR platform: Wellme Job Mar. 2004 (Renewed
Slide 81: History of Service Launches – Elderly/Disability Care Management Support, Overseas
History of Service Launches – Elderly/Disability Care Management Support, Overseas ～FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Management support platform for elderly/disability care operators: Kaipoke Jul. 2006 (Kabenashi Cloud also offered from D
Slide 82: History of Service Launches – Others
History of Service Launches – Others ～FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 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 dementia:
Slide 83: Dividends
Dividends *1 DPS (JPY) 30.5 29.5 28.5 20.0 15.0 10.5 9.5 8.5 7.5 6.5 5.5 3.5 3.5 2.0 2.5 1.25 1.5 0.625 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 1. Past stock splits are taken into account for the DPS calculation. 83 © SMS Co., Ltd.
Slide 84: Historical Financial Results
Historical Financial Results (¥ million) FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Net Sales 19,069 23,054 26,611 30,836 35,140 35,960 38,899 45,667 53,973 60,952 64,735 EBITDA 3,740 5,163 5,729 6,612 6,956 7,656 8,801 10,260 11,835 10,273 11,406 Operating Income 2,756 3,646 4,021 4,743
Slide 85: Number of Employees and Shareholder Composition
Number of Employees and Shareholder Composition Number of Employees Shareholder Composition*1 As of June 30, 2026: As of March 31, 2026: Number of shareholders 8,642 Category # of Employees Treasury stock Consolidated 4,921 6% Directors, Employee and Japan 3,802 Shareholding Associations 1% Others O
Slide 86: Cautionary Statement with Respect to Forward-Looking Statements
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