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1 © SMS Co., Ltd. SMS Co., Ltd. (2175 TSE Prime Market) Earnings Presentation for Investors, FY03/2025 April 28, 2025
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2 © SMS Co., Ltd. Table of Contents FY03/2025 Consolidated Financial Results FY03/2026 Guidance Medium-Term Target Topic References Mission and Strategy Appendix p.3 p.8 p.28 p.34 p.36 p.37 p.100 01 02 03 04 05
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3 © SMS Co., Ltd. 01FY03/2025 Consolidated Financial Results
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4 © SMS Co., Ltd. FY03/25 Consolidated Financial Results (Full-year) • Sales increased and profits decreased YoY due to the continued proactive hiring of career partners and increased investments in advertising, etc. • FY03/25 results were in line with the revised guidance announced with the Q3 financial results. FY03/25 [JPY million] FY03/24 Actual FY03/25 Revised guidance FY03/25 Actual YoY Change vs Revised guidance Net Sales 53,973 61,050 60,952 +13% (0%) Operating Income 8,269 6,300 6,335 (23%) +1% Ordinary Income 9,901 8,250 8,357 (16%) +1% Net Income 7,227 6,050 6,054 (16%) +0%
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5 © SMS Co., Ltd. FY03/25 Career Segment (Full-year) • Grew with strong demand for hiring professionals bymedical/elderly/disability care business operators. • Sales growth was limited due to a slowdown in job seekers' motivation to change jobs and increased competition for attracting job seekers. FY03/24 Actual FY03/25 Actual YoY Change Elderly Care Career 16,292 19,320 +19% Medical Care Career 16,086 16,891 +5% Total 32,379 36,211 +12% Sales, FY03/25 [JPY million]
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6 © SMS Co., Ltd. FY03/25 Elderly/Disability Care Operators Segment (Kaipoke, Full-year) • The number of Kaipoke memberships increased steadily. – 55,550 service offices (31,800 locations)*1 as of April 1, 2025 – Annual membership increase: 5,150 service offices (2,650 locations) • In addition to the increased usage of optional add-ons (factoring, tablets, smartphones, etc.), the M&A matching business also grew steadily. 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 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. FY03/24 Actual FY03/25 Actual YoY Change Elderly/Disability Care Operators (Kaipoke) 9,811 11,957 +22% Sales, FY03/25 [JPY million]
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7 © SMS Co., Ltd. FY03/25 Overseas Segment (Full-year*1) • Sales growth of Medical Platform Business was limited due to factors such as temporary reductions in marketing budgets by some customers. • Sales growth of Global Career Business was limited, affected by temporary factors such as visa suspensions and volatile situation in the Middle East. 1. Income statement of MIMS group is consolidated with a three-month delay and the results are for January to December. (Please refer to p.107) FY03/24 Actual FY03/25 Actual YoY Change Overseas 9,002 9,385 +4% Sales, FY03/25 [JPY million]
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8 © SMS Co., Ltd. 02FY03/2026 Guidance
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9 © SMS Co., Ltd. FY03/26 Consolidated Financial Guidance • Expect double-digit growth in both sales and profits. • Plan to invest in strengthening our service brands, revamping the DR*1 service, and developing new business to achieve sustainable growth in light of the solid market due to population aging. • The increase in expenses is expected to be limited in 1H FY03/26 compared to 1H FY03/25 when significant investments were made. FY03/26 Guidance [JPY million] FY03/25 Actual FY03/26 Guidance Difference (Amount) YoY Change Net Sales 60,952 67,544 6,591 +11% Operating Income 6,335 7,287 952 +15% Ordinary Income 8,357 9,468 1,111 +13% Net Income 6,054 7,029 974 +16% 1. Direct recruiting
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10 © SMS Co., Ltd. Supplementary Info: Historical Financial Results and FY03/26 Guidance Expect to achieve growth in sales for the 22ndconsecutive year since our establishment. 0.1 0.4 0.8 1.5 2.7 5.2 7.2 7.6 8.7 10.2 12.0 15.1 19.1 23.1 26.6 30.8 35.1 36.0 38.9 45.7 54.0 61.0 67.5 0.0 0.1 0.3 0.4 1.2 1.3 1.5 1.7 2.0 2.3 2.7 3.5 4.4 5.0 6.0 6.4 6.7 7.7 8.8 9.9 8.4 9.5 Trends in net sales and ordinary income Net Sales Ordinary Income (0.0) (JPY billions) (Guidance)
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11 © SMS Co., Ltd. Career Segment
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12 © SMS Co., Ltd. 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Growth Trajectory of Career Segment • Amid the growing demand for medical and elderly/disability care due to the aging population, we have been developing our Career Business centered on recruiting agent services to address the social issue of a growing shortage of professionals in these fields. • As a pioneer in the industry, we have accumulated know-how in areas such as attracting job seekers and improving placement rates, understanding the hiring needs of business operators and building relationships with them, and providing high-quality matching. Leveraging this expertise, we have continuously grown by solving the hiring challenges of hospitals and elderly care facilities. Sales of Career Segment (in JPY millions) 36,211
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13 © SMS Co., Ltd. Growth Rate Declines: Less Job Seeker Movement, More Competition • In FY03/25, there was a slowdown in job seekers’ motivation to change jobs due to factors such as improvements in workplace environments and working conditions resulting from work style reforms throughout the hospital following overtime regulations for doctors, as well as income growth resulting from revisions to medical/long-term care fees and flat-rate tax reduction measure. • In addition, increased competition has made it more difficult to attract job seekers. • Growth rate was below the initial forecast, while sales continued to grow. (Initial forecast) +22.6% 1. Sales growth was flat in FY03/21 and FY03/22 due to the impact of COVID-19. *1*1 +20.7% +21.0% +16.9% -0.7%*1 +0.1% +16.0% +18.8% +11.8% FY03/18 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23 FY03/24 FY03/25 Sales growth rate of Career Segment
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14 © SMS Co., Ltd. 2.15 2.40 2.72 FY2022 FY2026 FY2040 1.78 1.95 2.10 FY2018 FY2025 FY2040 1. In many cases, hospitals and elderly care operators do not have dedicated recruitment staff; instead, head nurses, facility managers, etc., handle hiring activities concurrently with their primary roles. Consequently, there is widespread demand for outsourcing certain recruitment functions, such as creating job postings, building a candidate pool, and initial screening. 2. MHLW, “Status of securing nurses and other nursing staff” 3. MHLW, “Required number of elderly care staff based on the 9th plan for long-term care insurance” Shortage of Professionals • While the demand for medical care, elderly care, and disability welfare continues to increase with the aging population, the demand for professionals in these fields is also continuously growing. • Although the demand for professionals is increasing, the growth in their supply is limited, and the gap between supply and demand is expected to widen. • Demand for recruiting agent services, which can substitute for or support business operators' recruitment functions *1, continues to grow. (in millions) Required number of nurses*2 Required number of care workers*3 vs 2022 +0.25 vs 2022 +0.57 vs 2018 +0.17 vs 2018 +0.32 (in millions)
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15 © SMS Co., Ltd. Growth Potential of Recruiting Agent Service (RAG) • The RAG market in the medical, elderly/disability care, and childcare fields is expected to continue to expand in the future, driven by factors such as an increase in the RAG penetration, rising wages for workers, and revisions to commission rates, against a backdrop of labor shortages. • As an industry pioneer, we will continue to drive market expansion, achieving above-market growth and increasing market share. 1. Calculated by totaling the estimated market size for each occupation. The size for each occupation is estimated by multiplying the projected number of job changers using RAG by the assumed commission fee per placement. Estimated market size of RAG for occupations we cover*1 2030 220.0 billion yen or more 2024 CAGR +7% or higher 146.0 billion yen
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16 © SMS Co., Ltd. Career consultation, Support in changing jobs Employment support for nursing students Career assessments, Career events for students Career consultation, Support in returning to work Community, Information provision, Online courses, Events for nurses Information provision for returning to work Competitive Advantage in Career Services for Nurses • Nursing requires a national license, which means the growth of the total number of nurses is limited to the number of nursing students. Effective strategies involve early outreach to students and providing occupation-specific support tailored to their career stage. • By engaging nursing students early through the community service and providing seamless access to job finding support, job changing support, and return-to-work support under the unified "Nurse-senka" brand, we will establish ourselves as a career support partner throughout nurses’entire professional lives. Finding job Community, Information provision, Online courses, National exam answer flash reports nursing students Changing job Leaving work due to life events Returning to job Web community for nurses and nursing students Nurses RAG*2 for nurses ・・・ 1. Approximately 70% of nursing students and approximately 90% of nurses are registered for Nurse-senka services as of the end of March 2025. 2. RAG: Recruiting agent service
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17 © SMS Co., Ltd. Career development support Provision of advanced qualification courses (e.g., practical training, certified care worker), Support in changing jobs Retention support Post-employment follow-up by supporters with 10+ years of elderly care experience Competitive Advantage in Career Services for Care Workers • It is essential to promote new employment from outside the elderly care industry to resolve the shortage of elderlycare workers. • Promote entry into the industry for those without experience by providing certification training through our schools and facilitating their placement with good elderly care operators.*1 • Through optimal matching with operators, providing retention support services, and support for continuous career development, we prevent turnover from the industry and establish ourselves as a career support partner in the elderly care field. Prevention of turnover from the industry RAG*2 for care workers Elderly care certification course Acquiring certifications Provision of beginner training for care workers Finding/ changing jobs Workers outside the industry / people without certifications Elderly care workers Workers in industries such as service and retail 1. We have supported the employment of over 20,000 people without elderly care experience cumulatively by the end of March 2025. 2. RAG: Recruiting agent service Support for employment at optimal elderly care operators, Pre-employment follow-up
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18 © SMS Co., Ltd. Development of a Cross-Occupational Direct Recruiting Platform • We will revamp "Kaigo Job", our direct recruiting (DR) service for elderly care workers, into a cross-occupational DR platform covering the medical, elderly/disability care, and childcare fields, during FY03/26. • Achieve significant growth by expanding the market into areas previously unreachable by recruiting agent services. • Launched "Kaigo Job", RAD*1 for elderly care workers, in 2004. • Initially based on posting and application fee model. • Converted to a success-based fee DR model around 2021. • Extended the service to nurses from FY03/25. • DR platform covering a wide range of occupations in the medical, elderly/disability care, and childcare fields. • Plan to gradually expand into occupations such as childcare workers, dietitians, rehabilitation professionals and medical technologists. Cross-occupational DR platform*2 1. RAD: Recruiting ads service 2. Brand name to be changed
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19 © SMS Co., Ltd. Competitive Advantage from Possessing both RAG*1 and DR*1 Platform By possessing both a highly specialized RAG*1 specific to each occupation and a cross-occupational DR*1 platform, we will establish a competitive advantage by maximizing both the acquisition of job seekers and job openings, and maximizing matching through mutual collaboration between services. Nurses Elderly care professionals Childcare workers DR Platform DR Platform DR Platform DR Platform DR Platform DR Platform Hospitals Elderly care facilities Childcare facilities OperatorsProfessionals 1. RAG: Recruiting agent service DR: Direct recruiting Mutual collaboration Maximizing job seeker acquisition Maximizing matching Maximizing job opening
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20 © SMS Co., Ltd. Growth Potential of the Career Segment • The career market, including RAG*1 and DR*1, is expected to have significant growth potential going forward, driven by the growing labor shortage in the medical, elderly/disability care, and childcare fields. • By possessing both occupation-specific RAGs and the cross-occupational DR platform, and by leveraging our Career Business know-how, as an industry leader, we will drive the expansion of the entire career market and grow faster than the market. 1. RAG: Recruiting agent service DR: Direct recruiting RAD: Recruiting ads service 2. Calculated by totaling the estimated market size for each occupation. The size for each occupation is estimated by multiplying the projected number of job changers using RAG/DR/RAD by the assumed commission fee per placement. Estimated market size of RAG/DR/RAD*1 for occupations we cover*2 178.5 billion yen 2030 268.5 billion yen or more 2024 CAGR +7％ or higherFY03/25 Sales of Career Segment:36.2 billion yen
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21 © SMS Co., Ltd. FY03/2026 Guidance by Segment
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22 © SMS Co., Ltd. FY03/26 Guidance: Career Segment • The demands for medical care and elderly care professionals continue to expand over the long term with the aging of the population and the decline in the working-age population. • Expect growth in both Elderly Care Career and Medical Care Career by optimizing career partner headcount and improving productivity *1, assuming continued headwinds from a slowdown in job seekers' motivation to change jobs and increased competition for attracting job seekers. • Plan to implement initiatives such as brand awareness campaigns to strengthen brands*2 and a revamp of our direct recruiting service*3 to drive medium- to long-term growth. FY03/25 Actual FY03/26 Guidance YoY Change Elderly Care Career 19,320 21,411 +11% Medical Care Career 16,891 18,028 +7% Total 36,211 39,439 +9% Sales, FY03/26 Guidance [JPY million] 1. Details are explained on p. 23. 2. Details are explained on pp. 24-25. 3. Details are explained on pp. 18-20.
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23 © SMS Co., Ltd. Supplementary Info: Productivity of Career Partners • In order to increase the number of career partners, which was reduced due to the COVID-19 pandemic, we have been actively hiring career partners since FY03/2023, and sales per person have been on a downward trend. • In FY03/2026, we will reduce the number of new career partner hires and aim to improve sales per person by strengthening management/training systems and leveraging technology including generative AI. Sales per career partner*1 1. The sales of each year in the Career Segment were divided by the average number of career partners during the fiscal year, and the index was calculated with FY03/2023 as 1. 1.00 0.94 0.87 0.95 FY03/23 FY03/24 FY03/25 FY03/26 (Guidance)
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24 © SMS Co., Ltd. Supplementary Info: What We Achieve with Stronger “Nurse-senka” • Unified the brand of multiple services for nurses under "Nurse-senka" in FY03/2025. • Establish and maintain the No. 1 position in the industry over the long term by ensuring that each service can be used seamlessly. • Aim to maximize the value provided as a partner throughout the professional life of nurses by offering highly specialized services. Remind when considering changing job Link job finding support and community Link job changing support and community Offering services as a partner throughout the professional lives of nurses under the "Nurse-senka" brand Web community for nurses and nursing students Employment support for nursing students RAG*1 for nurses 1. RAG: Recruiting agent service
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25 © SMS Co., Ltd. Gaining recognition and promoting use from nurses Employment support for nursing students Supplementary Info: Specific Measures Continuing from the previous year, we will implement the following measures: • Appeal to nurses through commercials, web marketing, holding offline events*1 for nurses, etc., to deliver the message as a unified brand to nurses and gain further recognition. • Design the user path and mutually utilize site contents to seamlessly connect each service. • Expand site contents and improve matching accuracy by leveraging our deep understanding of nurses to provide better service. Gaining recognition and promoting use from nursing students Seamless connection of each service Providing better service Providing better service Web community for nurses and nursing students RAG*2 for nurses 1. "Nurse Fest 2025" is scheduled to be held in May 2025. 2. RAG: Recruiting agent service
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26 © SMS Co., Ltd. FY03/25 Actual FY03/26 Guidance YoY Change Elderly/Disability Care Operators (Kaipoke) 11,957 13,968 +17% FY03/26 Guidance: Elderly/Disability Care Operators Segment (Kaipoke) • Long-term market prospects remain solid, backed by a continuous increase in the number of elderly/disability care operators and their needs for management support. • Expect steady growth driven by factors such as the customer acquisition of Kaipoke, increased usage of optional add-ons (factoring, tablets, smartphones, etc.), and growth in areas including M&A matching and RAG *1 for persons with disabilities. • Evolve “PROJECT RIN”, a business support system for disability welfare services into a more attractive product by adding features such as an insurance claim functionto drive medium- to long-term growth. Sales, FY03/26 Guidance [JPY million] 1. RAG: Recruiting agent
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27 © SMS Co., Ltd. FY03/26*1 Guidance: Overseas Segment • Expect growth in Medical Platform Business as the long-term market prospects remain solid with a continuous expansion of the healthcare market in Asia, while the impact of factors such as marketing budget reductions by some customers continues. • Global Career Business has huge long-term growth potential with the expanding demands for healthcare professionals across the globe. Expect growth by increasing the number of clients (healthcare institutions), while the impact of factors such as the volatile situation in the Middle East continues. FY03/25 Actual FY03/26 Guidance YoY Change Overseas 9,385 9,889 +5% Sales, FY03/26 Guidance [JPY million] 1. Income statement of MIMS group is consolidated with a three-month delay and the results are for January to December. (Please refer to p.107)
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28 © SMS Co., Ltd. 03Medium-Term Target
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29 © SMS Co., Ltd. Medium-Term Target • Aim to achieve a Compound Annual Growth Rate (CAGR) of 15% in Earnings Per Share (EPS) and a Return on Equity (ROE) of 20%. • We will continue to invest aiming for EPS growth and ROE improvement, while also flexibly implementing measures for shareholder returns. 1. Compound Annual Growth Rate (CAGR) calculated based on results from FY03/25 through FY03/31 2. ROE calculated excluding foreign currency translation adjustments, which are subject to significant fluctuations due to foreign exchange effects, from the denominator 3. Dividend per share to be maintained or increased compared with the previous fiscal year 4. However, this does not apply in the event of major investment opportunities such as M&A. Management indicators Achieve 15% CAGR by FY03/31*1 Shareholder returns Achieve 20% ROE at the earliest possible time, by FY03/31*2 Dividend payout ratio of 30% and progressive dividend policy*3*4 Implement flexibly, according to financial conditions and share price levels EPS ROE Dividends Share Repurchase Medium-term targets for management indicators and approach to shareholder returns
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30 © SMS Co., Ltd. 70.96 164.14 FY03/25 FY03/31 Continuous Growth in Earnings Per Share (EPS) EPS growth outlook yen or more CAGR +15% or higher yen • Although we have continuously grown EPS in the past, profits declined in FY03/25 due to external factors. • From FY03/26 onwards, we will steadily grow EPS while making growth investments and aim to achieve a 15% compound annual growth rate based on results from FY03/25 through FY03/31.
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31 © SMS Co., Ltd. 20.5% 19.2% 19.2% 18.9% 14.9% 20.0% FY03/21 FY03/22 FY03/23 FY03/24 FY03/25 FY03/31 Improvement in Return on Equity (ROE) • Currently, due to a temporary decline in the profit margin, ROE calculated excluding foreign currency translation adjustments*1 is at a lower level compared to the past. • While prioritizing ROE improvement through profit margin recovery, we will also pursue improvement through financial strategies such as flexible shareholder returns, and aim to achieve 20% ROE at the earliest possible time, by FY03/31. ROE Trend 1. ROE calculated excluding foreign currency translation adjustments, which are subject to significant fluctuations due to foreign exchange effects, from the denominator Aim to achieve at the earliest possible time or higher
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32 © SMS Co., Ltd. Shareholder Returns • Based on the judgment that EPS growth is achievable over the medium- to long-term, we have updated our dividend policy to implement a progressive dividend in addition to our target of a 30% consolidated payout ratio. • We will also implement share repurchases flexibly, considering our financial conditions and share price levels. Dividend Policy (Before the changes) Our basic policy for profit distribution is to pay dividends in line with business results for each fiscal year, with a target consolidated dividend payout ratio of 30%, while prioritizing growth investment and considering the financial conditions. However, this does not apply in the event of major investment opportunities such as M&A. (After the changes) Our basic policy for profit distribution is to implement a progressive dividend *1, with a target consolidated dividend payout ratio of 30%, while prioritizing growth investment and considering the financial conditions. However, this does not apply in the event of major investment opportunities such as M&A. Share Repurchase Program We implement share repurchases flexibly, according to financial conditions and share price levels. Our Approach to Shareholder Returns 1. Dividend per share to be maintained or increased compared with the previous fiscal year
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33 © SMS Co., Ltd. • The year-end cash dividend per share for FY03/25: 28.5 yen (increased by 8.5 yen compared with FY03/24) • The consolidated dividend payout ratio*1 based on actual EPS for FY03/25: 40.2% • Total payout ratio*2, including the share repurchase of approximately 3.9 billion yen executed in FY03/2025: 105.5% 0.625 1.25 1.5 2.0 2.5 3.5 3.5 5.5 6.5 7.5 8.5 9.5 10.5 15.0 20.0 28.5 6.8% 11.6% 12.3% 13.6% 14.8% 15.6% 12.5% 16.3% 16.8% 15.5% 15.5% 17.2% 16.9% 20.4% 24.1% 40.2% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 DPS (JPY) Dividend payout ratio *3 Supplementary Info: Trend in Shareholder Returns 1. Dividend payout ratio = DPS / EPS 2. Total payout ratio = (Total dividends to be paid + Total share repurchased) / Net income *Forecast for dividends 3. Past stock splits are taken into account for the DPS calculation.
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34 © SMS Co., Ltd. 04Topic
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35 © SMS Co., Ltd. Topic: Share Repurchase Program Plan to repurchase shares (up to 4 billion yen /3,382,600 shares) in order to enable flexible implementation of capital policies in response to changes in the business environment. 1. Maximum 2. The total number of shares to be repurchased is calculated based on the aggregate repurchase price of 4 billion yen and the closing price (1,182.5 yen) on April 25, 2025, which is one business day before the Board resolution, and the number of shares less than one unit is rounded down. 3. Excluding treasury shares Overview of Share Repurchase announced on April 28, 2025 Total number of shares to be repurchased 3,382,600 shares*1*2 (3.98 % of total shares outstanding*3) Aggregate repurchase price 4 billion yen*1 Repurchase period From April 30, 2025 to July 31, 2025 Repurchase method Market purchase based on a discretionary trading agreement
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36 © SMS Co., Ltd. 05References
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37 © SMS Co., Ltd. Mission and Strategy
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38 © SMS Co., Ltd. Mission
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39 © SMS Co., Ltd. Group Mission We aim to improve people’s quality of life by providing information infrastructure for an aging society.
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40 © SMS Co., Ltd. Aging Society Define our business domains in an aging society as Medical Care, Elderly/Disability Care, Healthcare, and Senior Life. Healthcare Elderly/Disability CareMedical Care Senior Life
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41 © SMS Co., Ltd. Information Infrastructure Define information infrastructure as a platform to connect those to whom we provide value: end users such as patients, the elderly and their families; professionals such as nurses and elderly care workers; and business operators such as hospitals and elderly/disability care operators. End users Patients, the elderly and their families, etc. who use services of medical care, elderly/disability care, healthcare, and senior life Professionals Nurses, elderly care workers, dietitians, etc. who directly provide services to end users Operators Hospitals, elderly/disability care operators, renovation companies, etc. which directly provide services to end users
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42 © SMS Co., Ltd. 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. Healthcare Medical Care Elderly/Disability Care Senior Life Professionals Operators End users Business Areas
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43 © SMS Co., Ltd. Issues in an Aging Society and Our Solutions
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44 © SMS Co., Ltd. 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. 68.1% 59.5% 55.1% working-age rate 52.8% 17.4% 28.6% 34.8% aging rate 37.9% 0% 25% 50% 75% 0 50 100 150 1950 2000 2020 2040 2060 0-14 15-64 (working-age) 65- (the elderly) The elderly population and its ratio will increase. The working-age population and its ratio will fall. (in millions) 1. MIC “Census”, “Population estimates”, National Institute of Population and Social Security Research “2023 Estimated future population of Japan” Population trends in Japan*1 Peak of the elderly population
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45 © SMS Co., Ltd. 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 1 Difficulty in sustaining high-quality medical care and elderly/disability care services Issue 2 More severe burden on the working generation Issue 3 Difficulty in solving problems related to living in an aging society
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46 © SMS Co., Ltd. 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 to sustain high-quality medical care and elderly/disability care services. Expense forecast for medical care, elderly care, and other welfare services *1 Medical care Elderly care Number of additional nurses required vs 2018 *2 +170 +320 Number of additional elderly care workers required vs 2022 *3 +250 +570 1. Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040” 2. MHLW, “Status of securing nurses and other nursing staff” 3. MHLW, “Required number of elderly care staff based on the 9th plan for long-term care insurance” 4. Required number as of 2026 (in JPY trillions) 39.2 10.7 48.7 14.6 68.3 24.6 2018 2025 2040 Other welfare 14.6 17.6 22.5 *4 (in thousands)
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47 © SMS Co., Ltd. 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 expenses. Social security expenses forecast *1 Working generation per the elderly *2 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” 1.6 ppl2.1 ppl 2.0 ppl 5.8 ppl x1.6Medical care Elderly carePension (in JPY trillions) 18.6 23.8 48.7 14.6 59.9 68.3 24.6 73.2 39.2 10.7 56.7 1990 2025 20402018 47.4 121.3 140.8 188.5 14.6 Other welfare 5.0 17.6 22.5
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48 © SMS Co., Ltd. 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 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. Age composition of population*1 Required services 65– 15–64 Rapid growth Stable growth Low growth 1950 1975 2000 2025 2050 0–14 years old 1. MIC “Census”, “Population estimates”, National Institute of Population and Social Security Research “2023 Estimated future population of Japan”
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49 © SMS Co., Ltd. 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. Issue 1 Difficulty in sustaining high- quality medical care and elderly/disability care services Issue 2 More severe burden on the working generation Issue 3 Difficulty in solving problems related to living in an aging society • Solve labor shortages and uneven distribution of medical care and elderly/disability care professionals. • Improve the management of medical care and elderly/disability care operators. • Increase the number of healthy people in the work force. • Provide a variety of options and high-quality decision- making information. Social issues in an aging society Our Solutions
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50 © SMS Co., Ltd. Strategic Business Areas Aim to solve the three critical issues in an aging society by defining our strategic business areas as Career, Elderly/Disability Care Operators, Healthcare, and Senior Life, and by strategically developing and nurturing businesses to address the issues. Healthcare Medical Care Elderly/Disability Care Senior Life Professionals Operators End users Healthcare Business Career Business Senior Life Business Elderly/Disability Care Operators Business Issue 2 Issue 1 Issue 3 Issue 1
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51 © SMS Co., Ltd. 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 medical care and elderly/disability care services and live with peace of mind; • live and work healthier for a longer period of time; • solve problems relating to daily life; and • make decisions on their own initiative about their lives and achieve better lifestyles. Professionals Professionals can: • choose the best workplace from various options; • improve their skills and knowledge through education and training; and • build better careers. As a result, they can enjoy their work and provide quality services to end users. Operators Operators can: • hire good staff members who work productively over the long term; and • focus on caring for the elderly and patients by improving their operational efficiency and management. As a result, they can provide quality services to end users through skilled staff members and good management.
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52 © SMS Co., Ltd. Growth Track
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53 © SMS Co., Ltd. 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 South Korea China Hong Kong Taiwan Singapore Malaysia Indonesia Thailand Vietnam Philippines India Australia New Zealand UAE Ireland Germany
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54 © SMS Co., Ltd. 8.9 13.2 16.92.7 10.6 19.34.9 12.0 5.3 9.4 1.1 3.4 15.1 35.1 61.0 FY03/15 FY03/20 FY03/25 Medical Care Career Elderly Care Career Kaipoke Overseas Business New Business 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. • 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. 3% 15% 14% 30% 38% 6% 15% 20% 32% 28%18% 59% Others 13% Career Business – Medical Care Career • Recruiting service for medical care professionals Career Business – Elderly Care Career • Recruiting service for elderly/disability care professionals Elderly/Disability Care Operators Business (Kaipoke) • Management support platform for elderly/disability care operators Overseas Business • Marketing support service for medical-related companies • Clinical decision support • Domestic/cross-border recruiting service of HCPs*1 New Business • Developing new businesses mainly in Healthcare and Senior Life domains Business Areas Breakdown of Net Sales (in JPY billions) 1. HCP: Healthcare professionals 10%
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55 © SMS Co., Ltd. Career Strategy
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56 © SMS Co., Ltd. Issue 1: Difficulty in sustaining high-quality medical care and elderly/disability care services (Repost) 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 to sustain high-quality medical care and elderly/disability care services. Expense forecast for medical care, elderly care, and other welfare services *1 Medical care Elderly care Number of additional nurses required vs 2018 *2 +170 +320 Number of additional elderly care workers required vs 2022 *3 +250 +570 1. Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040” 2. MHLW, “Status of securing nurses and other nursing staff” 3. MHLW, “Required number of elderly care staff based on the 9th plan for long-term care insurance” 4. Required number as of 2026 (in JPY trillions) 39.2 10.7 48.7 14.6 68.3 24.6 2018 2025 2040 Other welfare 14.6 17.6 22.5 *4 (in thousands)
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57 © SMS Co., Ltd. Healthcare Medical Care Elderly/Disability Care Senior Life Professionals Operators End users Healthcare Business Senior Life Business Elderly/Disability Care Operators Business Issue 2 Issue 3 Issue 1 Career Business Issue 1 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. Issue: Difficulty in sustaining high-quality medical care and elderly/disability care services Solution: Solve labor shortages and uneven distribution of medical care and elderly/disability care professionals
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58 © SMS Co., Ltd. 1.50 1.54 1.57 1.60 1.63 1.66 1.66 1.68 1.68 1.73 10.9% 11.0% 11.0% 10.8% 10.9% 10.9% 10.9% 10.7% 11.5% 10.6% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2040 0.0 1.0 2.0 3.0 4.0 5.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.0 1.0 2.0 3.0 4.0 5.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1.51 1.63 1.71 1.77 1.84 1.90 1.95 2.03 2.11 2.12 2.15 2.15 16.1%17.0%16.6%16.5%16.5%16.7%16.2%15.4%15.4%14.9%14.3%14.4% 201120122013201420152016201720182019202020212022 2040 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 will be required by 2040 compared to 2022. Number of nurses / their turnover rate*1 Number of care workers / their turnover rate*2 Jobs-to-applicants ratio of nurses*3 Jobs-to-applicants ratio of care workers*3 Care workers Nurses All job types 1. Number of nurses/their turnover rate: Japanese Nursing Association “Nursing Statistics”, Required number in 2040: MHLW, “Status of securing nurses and other nursing staff” 2. Number of elderly care workers: MHLW, “Required number of elderly care staff based on the 9th plan for long-term care insurance”, Turnover rate: Care Work Foundation "Care Work Survey" 3. MHLW, "Employment referrals for general workers” (in millions)(in millions) Required number vs 2018: +0.32 All job types Required number vs 2022: +0.57
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59 © SMS Co., Ltd. Mission of Career Business We aim to contribute to sustaining high-quality medical care and elderly/disability care services by solving labor shortages and uneven workforce distribution.
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60 © SMS Co., Ltd. Strategy of Medical Care Career Community Job fair Recruiting agent Direct recruiting Large hospitals Regional core hospitals Clinics Home-visit nursing Elderly care facilities Operators Students Professionals Potential workers Medical care professionals Solving uneven workforce distribution among medical functions/ regions Support for HR issues HR issues/ needs Career information/ opportunities Career issues/needs Professionals’ information • 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. Operators’ information
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61 © SMS Co., Ltd. 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. Recruiting agent Direct recruiting School Retention Elderly care facilities Home-visit elderly care Day care Others Operators Without experience Without certification Professionals Elderly care professionals Potential workers Support for HR issues HR issues/ needs Career information/ opportunities Career issues/needs Prevent from leaving the industry Promote new entry Professionals’ information Operators’ information
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62 © SMS Co., Ltd. Growth Scenario • The Career Segment has huge growth opportunities. • Leveraging our Career Business expertise developed as an industry pioneer, we are driving growth led by the stable growth in services for nurses, as well as services for care workers with severe labor shortages and RAG*1 for childcare workers, which has significant potential for expansion. RAG for childcare workers 1. RAG: Recruiting agent 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 FY03/25 4. DR: Direct recruiting RAG for PT/OT/ST RAG for care managers DR*4 for care workers RAG for care workers, School RAG for other co-medicals RAG for Judo therapists etc. RAG for nurses, Employment support for nursing students, Web community for nurses and nursing students Sales of Medical Care Career: JPY 16.9 billion*2*3 Sales of Elderly Care Career: JPY 19.3 billion*3 : Sales for FY03/25 : Estimates of the future sales
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63 © SMS Co., Ltd. Elderly/Disability Care Operators (Kaipoke) Strategy
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64 © SMS Co., Ltd. Issue 1: Difficulty in sustaining high-quality medical care and elderly/disability care services (Repost) 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 to sustain high-quality medical care and elderly/disability care services. Expense forecast for medical care, elderly care, and other welfare services *1 Medical care Elderly care Number of additional nurses required vs 2018 *2 +170 +320 Number of additional elderly care workers required vs 2022 *3 +250 +570 1. Cabinet Secretariat, CAO, MOF, MHLW, “Future outlook for social security in 2040” 2. MHLW, “Status of securing nurses and other nursing staff” 3. MHLW, “Required number of elderly care staff based on the 9th plan for long-term care insurance” 4. Required number as of 2026 (in JPY trillions) 39.2 10.7 48.7 14.6 68.3 24.6 2018 2025 2040 Other welfare 14.6 17.6 22.5 *4 (in thousands)
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65 © SMS Co., Ltd. Healthcare Medical Care Elderly/Disability Care Senior Life Professionals Operators End users Healthcare Business Career Business Senior Life Business Issue 2 Issue 1 Issue 3Elderly/Disability Care Operators Business Issue 1 Solution for Issue 1 in Elderly/Disability Care Operators 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 platform “Kaipoke”. Issue: Difficulty in sustaining high-quality medical care and elderly/disability care services Solution: Improve the management of elderly/disability care operators
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66 © SMS Co., Ltd. 143 153 162 172 179 186 189 192 194 197 200 204 206 43 46 48 51 53 54 55 56 57 57 58 58 59 186 199 210 223 232 239 244 248 251 254 258 262 264 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 4,081 4,216 4,349 4,456 4,560 4,655 4,729 4,808 4,908 4,970 5,000 1,530 1,622 1,709 1,748 1,760 1,758 1,853 1,879 1,910 1,926 1,9445,611 5,838 6,058 6,204 6,320 6,413 6,582 6,686 6,818 6,896 6,944 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Business Environment of Elderly Care Services As the population ages, the number of elderly care operators continues to increase, amounting to 260,000 offices. Number of people certified for long-term care/support need*1 Average annual rate of increase: 2.2% (in thousands) 1. MHLW, "Report on Long-Term Care Insurance" 2. MHLW, "Statistics of Long-term Care Benefit Expenditures” (March of each year) 3. Kaipoke targets in-home services such as in-home care support, home-visit elderly care, day care, home-visit nursing, and outpatient rehabilitation, etc., and does not target facility services such as commuting care for elderly with dementia, short stay, daily life care for elderly in specific facilities, and small-sized multifunctional inhome care, etc. Requiring long-term care Requiring support Number of elderly care service offices*2 Average annual rate of increase: 2.9% (in thousands) Operators that Kaipoke targets*3 Operators that Kaipoke does not target*3
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67 © SMS Co., Ltd. Business Environment of Elderly Care Services • More than 80% of the elderly care operators covered by Kaipoke are small corporations with one or two operating offices. • 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. Operating 1 office 63.5% Operating 2 offices 20.1% Operating 3 offices 8.5% Operating 4 or more offices 7.9% Size of corporations operating elderly care service offices*1 1. MHLW, "Long-Term Care Information Publication System", "Information Provision System for residences with health and welfare services" Compiled based on information as of January 2025
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68 © SMS Co., Ltd. 42 46 51 58 63 67 71 75 116 123 131 140 29 34 35 38 40 43 45 48 11 13 13 13 71 80 86 96 103 110 116 123 127 135 144 153 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1. MHLW, "Statistical Information on Welfare for Persons with Disabilities: Status of Use of Welfare Services for Persons with Disabilities, etc." 2. MHLW, "Statistical Information on Welfare for Persons with Disabilities: Status of Use of Welfare Services for Persons with Disabilities, etc.", "Recent Trends in the Field of Welfare for Persons with Disabilities" 3. Kaipoke and PROJECT RIN targets, in-home nursing care, visiting care for persons with severe disabilities, companion support, activity support, daily nursing care, independent living support, group home assistance, rehabilitation services, employment transition support, employment continuation support (Type A/B), employment retention support, planning consultation support, consultation support for children with disabilities, child development support, and after-school day services. 4. For companion support, activity support, independent living support, group home assistance (external/daytime support types), rehabilitation services, employment transition support, employment continuation support (Type A/B), employment retention support, planning consultation support, consultation support for children with disabilities are targeted by Kaipoke and PROJECT RIN, but the number of individual offices is unknown prior to FY 2019, so they are not targeted until 2019 and are counted as targeted starting in 2020. 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. 748 815 881 949 1,020 1,092 1,163 1,229 1,277 1,363 1,447 1,543 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Number of users of welfare services for persons with disabilities and for children with disabilities (average per month) *1 (in thousands) Average annual rate of increase: 6.8% Number of welfare service offices for persons with disabilities *2 (in thousands) Average annual rate of increase: 7.2% Operators that Kaipoke and PROJECT RIN targets*3*4 Operators that Kaipoke and PROJECT RIN does not target*3*4
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69 © SMS Co., Ltd. Mission of Elderly/Disability Care Operators Business (Kaipoke) We aim to contribute to sustaining high-quality elderly/disability care services by improving the management and the service quality of elderly/disability care operators.
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70 © SMS Co., Ltd. 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 (Business succession), etc., on top of the insurance claim service that is essential for elderly/disability care operations. Management Support Service development /provision In-home care support Day care Home-visit elderly care Home-visit nursing Outpatient rehabilitation Operators +α Business succession Partner A Partner B Service providers Partner C Management support platform Accumulation of information Service development/ improvement Elderly/disability care management data Insurance claim Operation Recruitment Purchasing Finance +α Back-office support
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71 © SMS Co., Ltd. Strategy of Kaipoke Maximize the value as a management support platform by No. 1 – 5 below. Increase the number of customers2 Insurance claim Operation Recruitment Purchasing Finance ＋α Development of services needed for management Expand operator coverage Penetration by customer success Back-office support 4 1 3 5 Business succession Analyze and leverage the data accumulated ＋αDay care Home-visit elderly care In-home care support Outpatient rehabilitation Home-visit nursing
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72 © SMS Co., Ltd. New Business (Healthcare) Strategy
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73 © SMS Co., Ltd. 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 for pensions, medical care, elderly care, and other welfare services, as well as the declining working-age population who cover these expenses. Social security expenses forecast *1 Working generation per the elderly *2 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” 1.6 ppl2.1 ppl 2.0 ppl 5.8 ppl x1.6Medical care Elderly carePension (in JPY trillions) 18.6 23.8 48.7 14.6 59.9 68.3 24.6 73.2 39.2 10.7 56.7 1990 2025 20402018 47.4 121.3 140.8 188.5 14.6 Other welfare 5.0 17.6 22.5
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74 © SMS Co., Ltd. Healthcare Medical Care Elderly/Disability Care Senior Life Professionals Operators End users Career Business Senior Life Business Elderly/Disability Care Operators Business Issue 1 Issue 3 Issue 1 Healthcare Business Issue 2 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. Issue: More severe burden on the working generation Solution: Increase the number of healthy people in the work force
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75 © SMS Co., Ltd. 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 the health of employees and their families. Physical disorder Number of patients with mood disorders *3 Approx. 1.59 million Mental disorder Number of diabetics*3 Approx. 5.52 million Number of hypertensive patients *3 Approx. 16.17 million Number of recipients of specific health guidance *2 Approx. 5.12 million Risk of lifestyle-related diseases Lifestyle-related diseases 1. QOL: Quality of life 2. Subjects are 40 – 74 years old. MHLW, "2022 Implementation of specified health checkups and specific health guidance" 3. MHLW, "2023 Patient survey"
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76 © SMS Co., Ltd. Mission of Healthcare Business We aim to contribute to improving QOL*1 and increasing the number of healthy people in the work force by preventing and treating lifestyle- related diseases and mental disorders. 1. QOL: Quality of life
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77 © SMS Co., Ltd. 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. Prevention / Improvement Service provision Employee Union member Family Companies/ Health insurance association ` Specific health guidance Aggravation prevention Quit-smoking program Industrial health +α Doctor Nurse HCPs Dietitian +α Accumulation of information Service development/ improvement Health Data ` Health and Productivity Management Support Platform 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.
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78 © SMS Co., Ltd. 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 dieticians and based on the results of verification projects conducted with MHLW. • Remote service using smartphones enables frequent and continuous intervention. Recruitment from our RAG*2 for dietitians/ online dietitian community Registered dietitians Health insurance association Recipients of guidance Prevent lifestyle- related diseases of the insured Blood test / Number of steps and activity / Body weight and blood pressure / Meal image / Inquiry and questionnaire / Chat data Effective guidance method based on the data analysis Consultation Chat /My Data1. HIA: Health insurance association 2. RAG: Recruiting agent service Health Data Medical specialists
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79 © SMS Co., Ltd. Client Employees• Enhance employees’ Health • Develop industrial health systemStress check Recording Health committee Interview setting 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 and realize effective mental care through the service provided by the two-person system of an industrial physician and an industrial nurse. Recruitment from our RAG*1 for nurse/ online nurse community Online interview Operation support Visits and workplace monitoring Industrial nurses 1. RAG: Recruiting agent service Industrial physicians
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80 © SMS Co., Ltd. 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 mental disorders. 1. Joint project with MHLW, METI, and national hospitals Effective and affordable solutions for prevention of lifestyle-related diseases and mental disorders • Enable us to recruit skilled HCPs essential for healthcare services. • Enable us to provide inexpensive and efficient services using ICT. • Enable us to provide services with proven effectiveness. ICT Capabilities Results from Verification Projects*1 HCP Networks
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81 © SMS Co., Ltd. Strategy of Healthcare Business Maximize the value as a health and productivity management support platform by No. 1 – 5 below. Increase the number of clients/users2 Develop digital health services for health and productivity management Expand industry/business type coverage Improve services by recruiting and training HCPs 4 1 3 5 Analyze and leverage the health data accumulated ＋αSmall and medium sized companies HospitalHealth insurance association Elderly care operator Health guidance Aggravation prevention of diabetes Quit-smoking program Promotion to take med-checkups Industrial health ＋α Stress check Health consultation Support for employees caring for families
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82 © SMS Co., Ltd. New Business (Senior Life) Strategy
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83 © SMS Co., Ltd. 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 to living 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. Age composition of population*1 Required services 65– 15–64 Rapid growth Stable growth Low growth 1950 1975 2000 2025 2050 0–14 years old 1. MIC “Census”, “Population estimates”, National Institute of Population and Social Security Research “2023 Estimated future population of Japan”
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84 © SMS Co., Ltd. Healthcare Medical Care Elderly/Disability Care Senior Life Professionals Operators End users Healthcare Business Career Business Senior Life Business Elderly/Disability Care Operators Business Issue 2 Issue 1 Issue 3 Issue 1 Solution for Issue 3 in Senior Life Business Contribute to solving the social issue “difficulty in solving problems related to living in an aging society” by developing a platform that connects people who have some worries or problems in their lives, with advisors and solution services. Issue: Difficulty in solving problems related to living in an aging society Solution: Provide a variety of options and high-quality decision-making information.
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85 © SMS Co., Ltd. Mission of Senior Life Business We aim to contribute to improving people’s lives by offering a wide range of options and information related to living in an aging society.
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86 © SMS Co., Ltd. Elderly care End-of-life planning Food Housing ＋α 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 planning. Problem-Solving PlatformThe elderly and families Service providers Customer referral Information gathering/ consultation Service provider referral Answer / advice Service delivery
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87 © SMS Co., Ltd. Strategy of Senior Life Business Maximize the value as a problem-solving platform by No. 1 – 4 below. The elderly and families Professionals Provider Provider Provider Provider Provider Provider Provider Provider Provider Provider +α +α +α +α +α ＋αCare facility referral Elderly mealRenovation Funeral ＋α Housing Food End-of-life planning Expand category coverage2 Increase the value as a comprehensive consultation desk for elderly care 1 Support to improve management of service providers4 Variety of problems mainly related to elderly care Elderly care Increase the number of service providers3 Problems related to specific areas
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88 © SMS Co., Ltd. Overseas Strategy
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89 © SMS Co., Ltd. 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. Medical Marketing Clinical Decision Support Global Career Business Medical Platform Business Marketing support service for medical-related companies*2 Prescription error check service, etc. for healthcare institutions such as hospitals Domestic/cross-border recruiting service of HCPs Overseas Business Structure Overseas Segment 1. HCP: Healthcare professionals 2. Operators such as pharmaceutical companies, medical device manufacturers, healthcare service operators, and industrial group.
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90 © SMS Co., Ltd. Medical Platform Business
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91 © SMS Co., Ltd. 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, and social 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 1. WHO “Global Health Expenditure Database” (2022) 16.5% 11.4% 11.1% 5.6% 5.4% 5.2% 4.9% 4.6% 3.9% 3.3% 2.7% U.S. Japan U.K. Thailand China Philippines Singapore Vietnam Malaysia India Indonesia
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92 © SMS Co., Ltd. Mission of Medical Platform Business We aim to contribute to realizing healthy and high- quality lives by improving the availability and safety of medical care in APAC.
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93 © SMS Co., Ltd. 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. 1. CME: Continuing medical education Localized valuable information Information sharing including issues/needs regarding marketing Expansion of membership base/ enhancement of engagement Solution/support for marketing issues Data of employees, products, and patients Medical Platform Medical-related companies Pharmaceutical company Medical device manufacturer Other healthcare manufacturer Industry association (doctor/academy) Government agency +α HCPs Doctor Dentist Pharmacist Nurse Student ＋α Symposium/ Seminar Academic paper Online CME*1 Medical care news Clinical guideline Drug information ＋α Accumulation of information Service development and improvement
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94 © SMS Co., Ltd. Strategy of Medical Platform Business Maximize the value as a medical platform by No. 1 – 5 below. Increase the number of clients2 Expand types of information to provide/ improve quality and quantity of the information Expand industry/business type coverage Engage healthcare professionals 4 1 3 5 Symposium/Seminar Academic paper Online CME Medical care news ＋α Clinical guideline Drug information Analyze and leverage the information accumulated ＋αMedical device manufacturer Other healthcare manufacturer Pharmaceutical company Government agency Industry association
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95 © SMS Co., Ltd. Global Career Business
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96 © SMS Co., Ltd. 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 to the increasing demand for medical care. Japan 320 (2040) Germany 390 (2035) Australia 120 (2030) South Korea 160 (2030) Saudi Arabia 100 (2030) Expected Shortage of Nurses*2Health Expenditure*1 0.0 2.5 5.0 7.5 10.0 2000 2005 2010 2015 2020 (in thousands)(in USD trillions) 1. WHO “Global Health Expenditure Database” (FX rates: 2022) 2. Japan: MHLW, “Status of securing nurses and other nursing staff”, Germany: PwC "Fachkräftemangel im Gesundheitswesen: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"
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97 © SMS Co., Ltd. Mission of Global Career Business We aim to contribute to improving the quality of medical care around the world by solving the shortage and uneven distribution of healthcare professionals.
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98 © SMS Co., Ltd. HCP*1 Supply Platform Promote optimal cross-border and domestic matching according to the supply of HCPs and the demand from healthcare institutions*2. Cross-border matching Domestic matching HCP Supply Platform 1. HCP: Healthcare professional 2. Hospitals, clinics etc. U.K. Ireland Australia New Zealand UAE Malaysia Philippines India South Korea China HCPs Healthcare Institutions Singapore U.S. Malaysia South Korea China U.K. Ireland Australia New Zealand UAE Germany Malta Saudi Arabia Qatar
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99 © SMS Co., Ltd. Strategy of Global Career Business Maximize the value as a HCP supply platform by No. 1 – 5 below. U.K. Ireland Australia New Zealand UAE Malaysia Philippines India South Korea China HCPs Healthcare Institutions Singapore U.S. Malaysia South Korea China U.K. Ireland Australia New Zealand UAE Germany Malta Saudi Arabia Qatar 5 Optimizing/ increasing matching 4Increase Number of HCPs 3Expand Countries 1Expand Countries 2Increase Number of Clients HCP Supply Platform Domestic matching Cross-border matching
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100 © SMS Co., Ltd. Appendix
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101 © SMS Co., Ltd. Business Model of Career Business Sales activity Job orders Business model of Recruiting Agent 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. Business model of Direct Recruiting Receive a fee from a hiring business operator, based on the occupation, when an applicant joins. OperatorsProfessionals Attracting job seekers Registration OperatorsProfessionals Sales activity Recruiting ads Attracting job seekers Registration Fee Application Fee Matching Matching Nurses Website Hospitals Elderly care operators Elderly care operators Care workers Care workers Website Career partner Direct recruiting email
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102 © SMS Co., Ltd. Kaipoke’s Main Services Subscription-based management support platform providing more than 40 services as a package*1 1. Additional payments are required for the use of two or more iPads, factoring, etc. Operation Improvement Recruitment Finance Insurance Claim Back-office Support • Elderly care operators can claim for the reimbursement of insurance efficiently. • Support the recruitment of professionals working for elderly/disability care operators, in collaboration with Career Business. • Provide one iPad for free to enable care workers to complete documentations at their customer sites. • Provide factoring services to improve operators’ cash flows. • Support for improving the efficiency of back-office operations, including labor management (such as staff attendance management, payroll calculation/transfers), business management, client billing information management, and accounting processing. Purchasing • Elderly/disability care operators can procure various equipment and supplies, such as rental smartphones, in an easy and inexpensive way. Opening Support • Support procedures needed to open an elderly care business such as application for designation, financing, finding office properties and market research. Business Succession • Supporting the succession of elderly/disability care operators
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103 © SMS Co., Ltd. MIMS Group Profile MIMS group global coverage MIMS group profile Founded 1963 Business • Medical Platform • Global Career Global coverage 17 countries and regions, mainly in APAC Number of memberships 3.65 million *1 Acquisition date October 7, 2015 1. As of December 2024
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104 © SMS Co., Ltd. Business Model of Medical Marketing Support marketing activities of medical-related companies*1 1. Operators such as pharmaceutical companies, medical device manufacturers, healthcare service operators, and industrial group 2. Healthcare professionals such as doctors, nurses, and pharmacists HCPs *2Medical-related companies*1 Fee Optimized marketing solutions Medical/healthcare information via various channels Publication, Web, event etc.
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105 © SMS Co., Ltd. Business Model of Clinical Decision Support Provide a drug database for prescription error checks in healthcare institutions Healthcare institutions Fee • Drug database • Database can be integrated into core systems of healthcare institutions Hospitals Clinics Pharmacies
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106 © SMS Co., Ltd. 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. 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 and other 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. Acquired NURSCAPE Acquired MELORITA Acquired MSR Acquired CCM Acquired CWC/CF South Korea Malaysia the Philippines Ireland Australia Germany Sep. 2011 Jun. 2017 May 2018 Aug. 2019 Dec. 2022
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107 © SMS Co., Ltd. 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. Consolidated MIMS Group Apr. – Jun. Jul. – Sep. Oct. – Dec. Jan. – Mar.Jan. – Mar. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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108 © SMS Co., Ltd. Segment Category Services Elderly Care Career Services for care workers Others Medical Care Career RAG *3 services Others Business Portfolio*1 – Career*2 RAG*3 for care managers RAG*3 for PT/OT/ST Certification course information RAG*3 for nurses RAG*3 for medical technologists RAG*3 for dietitians Workplace assessment tool for nurses RAG*3 for radiological technologists RAG*3 for clinical engineers Web community for nurses and nursing students Employment support for nursing students Scholarship information portal DR*3 for care workers Elderly care certification course RAG*3 for care workers RAG*3 for childcare workers DR*3 for Judo therapists etc. National examination reference book for Judo therapists etc. RAG*3 for Judo therapists etc. 1. As of April 2025 2. Career businesses for doctors and pharmacists are operated by M3 Career, Inc., a JV between M3, Inc.(51%) and SMS (49%). 3. DR: Direct recruiting RAG: Recruiting agent service
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109 © SMS Co., Ltd. Business Portfolio*1 – Elderly/Disability Care Operators, Overseas, New Business Segment Services Elderly/Disability Care Operators Overseas New Business (Healthcare) New Business (Senior life) 1. As of April 2025 2. RAG: Recruiting agent service Remote industrial health service Web community for dietitians Information portal of industrial health service Health maintenance/ promotion support for women Preventive solution for elderly care turnover Quit-smoking support using ICT Information portal of dementia Solution for dementia prevention Preventive solution for lifestyle-related diseases Health guidance solution Quit-smoking solution with behavior therapy Frailty prevention service Drug information service for healthcare professionals and institutions Medical ad services （Philippines, Indonesia, Malaysia） Career related service for nurses (South Korea) Cross-border RAG*2 for healthcare professionals (Malaysia, Philippines, Ireland, UK, Germany, etc.) Management support platform for elderly/disability care operators Research and information on the aging society Information portal for management of elderly care operators Referral service of home-delivered meals Referral service of housing for the elderly Referral service of renovation operators Referral service of funeral companies Web community for care managers Web community for people struggling with elderly care Habitual support for dementia prevention Stress checks specialized for medical care and elderly care industries RAG*2 for persons with disabilities Information service on employment support offices for persons with disabilities RAG*2 for construction industry
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110 © SMS Co., Ltd. RAG*1 for care managers: Care Jinzai-bank May 2003 Certification course information: Shikatoru Nov. 2003 DR*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 1. RAG: Recruiting agent service DR: Direct recruiting Elderly Care Career History of Service Launches – Elderly Care Career FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10FY09FY08FY07~FY06 FY24FY20 FY21 FY22 FY23
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111 © SMS Co., Ltd. History of Service Launches – Medical Care Career Company split and succeeded to M3 Career, Inc. at the end of Dec. 2009 RAG*1 for pharmacists: Yaku Kyari Agent Apr. 2007 RAG*1 for doctors: M3 Career Agent Aug. 2006 RAG*1 for medical technologists: Kensagishi Jinzai-bank Sep. 2013 RAG*1 for dietitians: Eiyoshi Jinzai-bank May 2012 Employment support for nursing students: Nurse-senka Shushoku Aug. 2009 (Renamed from Nurse-senka Shushoku-navi in Aug. 2024) RAG*1 for radiological technologists: Hoshasengishi Jinzai-bank Jun. 2014 RAG*1 for clinical engineers: Kogakugishi Jinzai-bank Jul. 2014 Web community for nurses and nursing students: Nurse-senka Aug. 2006 RAG*1 for Judo therapists etc.: Kokushi-kurohon Chiryoka Agent (Renamed from WILLONE Agent in Apr. 2025) National examination reference book for Judo therapists etc.: Kokushi-kurohon RAG*1 for childcare workers: Hoikushi Jinzai-bank Oct.2018 Scholarship information portal: Kango Shogakukin-navi Oct. 2012 Medical Care Career RAG*1 for nurses: Nurse-senka Tenshoku Sep. 2005 (Renamed from Nurse Jinzai-bank in Aug. 2024) 1. RAG: Recruiting agent service FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10FY09FY08FY07~FY06 FY24FY20 FY21 FY22 FY23 Workplace assessment tool for nurses: Nurse-senka Shokubashindan Sep.2024 Nov.2017
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112 © SMS Co., Ltd. History of Service Launches – Elderly/Disability Care Operators, Overseas Medical Marketing, Clinical Decision Support : MIMS Oct. 2015 Management support service for elderly/disability care operators: Kaipoke Jul. 2006 (PROJECT RIN also offered from Dec. 2024) (South Korea) Career related service for nurses: Nurscape Sep. 2011 Medical ad services Jan. 2015 Cross-border RAG*1 for Healthcare Professionals Jun. 2017 Information portal for management of elderly care operators: Kaigo Keiei.com Dec. 2020 Research and information on elderly society : Korei Shakai Labo Nov. 2020 1. RAG: Recruiting agent service FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10FY09FY08FY07~FY06 FY24FY20 FY21 FY22 FY23 Elderly/Disability Care OperatorsOverseas RAG *1 for persons with disabilities: DEIGO Kyujin-navi Sep. 2024 Information service on employment support offices for persons with disabilities: DEIGO Shuroshien-navi Sep.2024
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113 © SMS Co., Ltd. History of Service Launches – New Business (Healthcare) 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 Remote industrial health service: Remote Sangyo Hoken Apr. 2019 Health maintenance/promotion support for women: Lady to Go! Dec. 2018 Information portal of industrial health service: Sanchie Apr. 2019 Preventive solution for elderly care turnover: Remote Kaigo Sodan Jul. 2019 Quit-smoking support using ICT: Kinen Shido Service Jul. 2018 Information portal of dementia: Ninchisho Net Aug. 2011 Web community for dietitians: Eichie Jun. 2011 Quit-smoking solution with behavior therapy: One to One Kinen Shido Service Jul. 2022 Frailty prevention service: Data-driven Kaigo Frailty Yobo Jul. 2022 Stress checks specialized for medical care and elderly care industries: Stress Check Sep. 2015 FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10FY09FY08FY07~FY06 FY24FY20 FY21 FY22 FY23
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114 © SMS Co., Ltd. History of Service Launches – New Business (Senior Life) Referral service of renovation operators: Hapisumu Reform Apr. 2016 Referral service of funeral companies: Anshin Sougi Mar. 2018 Web community for people struggling with elderly care: Anshin Kaigo Jun. 2009 Referral service of home-delivered meals: Lifood Nov. 2013 Web community for care managers: Care-mane.com Sep. 2006 Referral service of housing for the elderly: Anshin Kaigo Shokai Center Apr. 2013 (Renewed from KaigoDB in Jul. 2024) New Business (Senior Life) FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10FY09FY08FY07~FY06 FY24FY20 FY21 FY22 FY23 RAG*1 for construction industry: Hapisumu Sumai Career Aug. 2022 1. RAG: Recruiting agent service
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115 © SMS Co., Ltd. 0.625 1.25 1.5 2.0 2.5 3.5 3.5 5.5 6.5 7.5 8.5 9.5 10.5 15.0 20.0 28.5 6.8% 11.6% 12.3% 13.6% 14.8% 15.6% 12.5% 16.3% 16.8% 15.5% 15.5% 17.2% 16.9% 20.4% 24.1% 40.2% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 DPS (JPY) Payout ratio Dividends 1. Past stock splits are taken into account for the DPS calculation. 2. Payout ratio = DPS / EPS *1 *2
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116 © SMS Co., Ltd. Historical Financial Results 1. Past stock splits are taken into account for the EPS, DPS and TSR calculations. 2. ROE (from FY10 onwards) calculated excluding foreign currency translation adjustments, which are subject to significant fluctuations due to foreign exchange effects, from the denominator 3. (Ending share price of the fiscal year + Total dividends paid over 5 years) / Ending share price 5 fiscal years ago 4. FY24 dividend to be finalized following the general meeting of shareholders in June. FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Net Sales 58 383 835 1,545 2,715 5,177 7,172 7,618 8,692 10,181 12,046 15,056 19,069 23,054 26,611 30,836 35,140 35,960 38,899 45,667 53,973 60,952 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 8,269 6,335 Ordinary Income (5) 49 108 269 415 1,238 1,266 1,530 1,734 1,990 2,340 2,693 3,509 4,430 5,007 5,979 6,355 6,653 7,726 8,759 9,901 8,357 Net Income (5) 31 63 157 244 719 717 876 1,004 1,226 1,380 1,824 2,265 2,801 3,361 4,216 4,760 4,800 5,408 6,406 7,227 6,054 EPS*1 (JPY) (5.8) 1.8 1.5 2.2 3.3 9.2 9.2 11.1 12.2 14.9 16.8 22.4 27.9 33.7 38.7 48.5 54.7 55.1 62.1 73.5 83.0 71.0 Total Assets 59 357 566 1,016 1,806 3,118 3,645 4,672 5,716 6,948 8,406 11,421 41,689 43,231 46,087 47,467 50,996 49,444 56,585 65,098 72,475 76,540 Liabilities 55 166 196 489 822 1,410 1,266 1,430 1,579 1,794 2,331 4,497 28,532 21,648 22,446 31,928 31,597 26,785 26,594 26,677 28,190 29,221 Net Assets 4 190 369 527 983 1,708 2,379 3,242 4,136 5,153 6,074 6,923 13,157 21,583 23,641 15,539 19,398 22,658 29,991 38,421 44,284 47,319 Equity Ratio (%) 7.5 53.3 65.3 51.9 54.4 54.8 65.2 69.2 72.3 74.1 71.5 59.7 20.5 39.6 41.8 32.4 37.7 45.3 52.4 58.3 60.7 61.5 ROE *2 (%) (124.9) 31.8 22.8 35.1 32.3 53.4 35.1 31.2 27.1 26.2 24.7 29.1 30.3 21.2 17.4 22.3 24.7 20.5 19.2 19.2 18.9 14.9 DPS*1 (JPY) - - - - - 0.625 0.625 1.25 1.5 2.0 2.5 3.5 3.5 5.5 6.5 7.5 8.5 9.5 10.5 15.0 20.0 28.5*4 Dividend Payout Ratio (%) - - - - - 6.8 6.8 11.6 12.3 13.6 14.8 15.6 12.5 16.3 16.8 15.5 15.5 17.2 16.9 20.4 24.1 40.2*4 TSR*1*3 (%) - - - - - - - - - - 177.1 514.5 1,150.3 1,057.5 682.8 402.3 263.6 317.8 243.5 143.2 132.6 57.8*4 (in JPY millions)
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117 © SMS Co., Ltd. Number of Employees and Shareholder Composition Number of Employees Shareholder Composition*1 1. Pie chart shows the ratio of number of stocks held by each category. Foreign Institutional Investors 43% Domestic Institutional Investors 20% Founder 19% Individual Investors 7% Directors, Employees and Shareholding associations 1% Treasury stock 3% Others 7% As of March 31, 2025: As of March 31, 2025 : Number of shareholders 9,597 Category # of Employees Consolidated 4,528 Japan 3,363 Overseas 1,165
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118 © SMS Co., Ltd. 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 March 31, 2025. 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 medical care, elderly/disability 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, medical care, and elderly/disability care; • any damage to the brand image; • risk of infringing intellectual property rights; • fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the US dollar, the Singapore dollar, the Hong Kong dollar and the Australian dollar; and • risk of impairment losses, particularly with respect to goodwill, trademark right and customer-related assets recognized in connection of the acquisition of Medica Asia (Holdco) Limited in October 2015. A discussion of these and other factors which may affect the Company’s actual results, performance, achievements or financial position is described in “Business Risks” contained in the Company’s corporate website*1. We do not intend, and disclaim any duty, to update or revise any forward-looking statements contained in these materials to reflect new information, future events or otherwise. We caution you not to place undue reliance on any forward-looking statements contained in these materials. For any inquiries on the materials, please contact below: IR and Research Department Email: irinfo@bm-sms.co.jp Phone: +81-3-6721-2403 1. https://global.bm-sms.com/ir/management/risk_factor/