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1 © SMS Co., Ltd. SMS Co., Ltd. (2175 TSE Prime Market) Earnings Presentation for Investors, Q3 FY03/2026 January 30, 2026
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2 © SMS Co., Ltd. Table of Contents Q3 FY03/2026 Consolidated Financial Results References Mission and Strategy Appendix p.3 p.12 p.13 p.77 01 02
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3 © SMS Co., Ltd. 01Q3 FY03/2026 Consolidated Financial Results
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4 © SMS Co., Ltd. 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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5 © SMS Co., Ltd. FY03/26 Consolidated Financial Results (Q3) • Achieved YoY growth in both sales and profits. • Results have tracked below plan, mainly due to a delayed pace of sales recovery centered on the Career and Overseas segments. • While implementing recovery measures in each business, we will execute strategic investments*1 essential for growth from the next fiscal year onward. Q3 YTD, FY03/26 [JPY million] Q3 FY03/25 Actual Q3 FY03/26 Actual YoY Change Net Sales 44,885 47,346 +5% Operating Income 3,592 3,905 +9% Ordinary Income 5,121 5,375 +5% Net Income 3,846 4,660 +21%*2 1. Strategic review is underway following the management transition. (Please refer to pp. 9-10) 2. Net income growth was driven by temporary tax benefits resulting from the reorganization of overseas businesses into MIMS.
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6 © SMS Co., Ltd. FY03/26 Career Segment (Q3) • Grew with strong demand for hiring professionals bymedical/elderly/disability care business operators. • Sales growth was limited due to factors such as prolonged lead times to placement in the RAG*1 and the abolition of "continuous service allowances" in the DR*2. • Aim to recover performance by optimizing the matching process tailored to the shift in job seeker profiles and leveraging technology for efficiency, while advancing reforms for sustainable medium- to long-term growth. Q3 FY03/25 Actual Q3 FY03/26 Actual YoY Change Elderly Care Career 14,411 15,290 +6% Medical Care Career 13,227 13,578 +3% Total 27,639 28,868 +4% Sales, Q3 YTD, FY03/26 [JPY million] 1. RAG: Recruiting agent service 2. DR: Direct recruiting
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7 © SMS Co., Ltd. FY03/26 Elderly/Disability Care Operators Segment (Kaipoke, Q3) • The number of Kaipoke memberships*1 increased steadily. – 59,300 service offices*2 (26,350 companies*3) as of January 1, 2026 – Q3 YTD membership increase: 3,750 service offices (1,450 companies) • In addition to the increased usage of optional add-ons (factoring, tablets, smartphones, etc.), the M&A matching business and RAG*4 for persons with disabilities also contributed to growth. 1. Including customers of Kabenashi Cloud, a business support system for disability welfare services (revamped from "PROJECT RIN" in June 2025) 2. # of service offices: the number of elderly care services / welfare services for persons with disabilities provided based on the public insurance scheme 3. While our billing was traditionally on a per-location basis, our "Kabenashi Cloud" service uses a company-level billing system. Accordingly, we shifted our disclosure metric from the number of locations to the number of companies, effective Q2 FY03/26. (Please refer to p.48 for historical data) 4. RAG: Recruiting agent service Q3 FY03/25 Actual Q3 FY03/26 Actual YoY Change Elderly/Disability Care Operators (Kaipoke) 8,796 10,079 +15% Sales, Q3 YTD, FY03/26 [JPY million]
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8 © SMS Co., Ltd. FY03/26 Overseas Segment (Q3*1) • Sales growth of Medical Platform Business was limited due to factors such as reductions in marketing budgets by some customers. • Sales of Global Career Business decreased YoY, mainly due to concerns over the Middle East situation, affecting cross-border travel of healthcare professionals. • Initiated a strategic review of the Overseas portfolio, prioritizing future growth potential and profitability, ahead of our Group-wide strategy update. 1. Income statement of MIMS group is consolidated with a three-month delay and the Q3 results are for January to September. (Please refer to p.84) Q3 FY03/25 Actual Q3 FY03/26 Actual YoY Change Overseas 6,083 5,637 (7%) Sales, Q3 YTD, FY03/26 [JPY million]
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9 © SMS Co., Ltd. • Transitioned to a new management structure effective January 2026. • Our top management priority is to maximize intrinsic corporate value through sustainable growth and improved capital efficiency, while ensuring this value is appropriately reflected in the share price. Management Transition January 2026: New Management Structure Launched – Drive sustainable corporate value enhancement under the new leadership of CEO Takahata. Strategy Update Fundamental Strategy Overhaul for Sustainable Growth – Address recent underperformance as an internal management challenge, rather than relying on external factors. – Transform the management model to support business expansion and diversification. Enhancing Market Valuation Responsibility to Achieve Fair Valuation – View the current undervaluation of our business foundation and growth potential as unacceptable. – Reaffirm our duty as a listed company to unlock shareholder value and devote full efforts to improving market rating. Topic: Commitment to Maximizing Corporate Value
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10 © SMS Co., Ltd. Topic: Key Pillars of New Growth Roadmap • Actively developing a roadmap for sustainable medium- to long-term growth. • Details centered on the three pillars below to be unveiled at the FY03/26 full-year results presentation. Transformation to Synergistic Portfolio Management Evolve into a "Synergistic Portfolio Management" model to optimize oversight of diverse businesses across varying growth phases. Unlocking Intrinsic Value Achieve fair market valuation by redefining and communicating the equity story centered on synergistic portfolio management *1. 01. Management Policy / Growth Strategy Existing Core Businesses Solidify competitive advantage via strategic investment in potential growth opportunities, developing into robust cash generators over the medium to long term. New / High-Growth Businesses Prioritize market share expansion and top-line growth through upfront investments based on rigorous market potential assessments. Mature / Revitalization Businesses Maximize cash generation via thorough productivity improvements, and restructure or exit businesses with limited growth potential or lack of synergy. 02. Strategic Approach Tailored to Business Stages Optimal Balance between Investment and Returns Prioritize disciplined growth investments while actively allocating excess cash to shareholder returns. Maximizing ROE*2 Promote cost-of-capital-conscious management through strategic leverage optimizing capital structure and agile share repurchases. 03. Capital Allocation 1. Consider disclosing profits and KPIs by segment. 2. Aim to achieve 20% at the earliest possible time, by FY03/31.
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11 © SMS Co., Ltd. • Based on our dividend policy*1, the dividend per share for FY03/26 is planned to be 29.5 yen (an increase of 1.0 yen compared to FY03/25). • Consolidated dividend payout ratio*2 based on the net income forecast per share: 34.7% • Total payout ratio*3, including the share repurchase executed from April to July 2025: 91.3% 1. Dividend Policy: Our basic policy is to implement a progressive dividend policy* targeting a consolidated dividend payout ratio of 30%, while prioritizing investments for growth and taking our financial condition into account. Exceptions may apply in cases of significant capital allocation opportunities, such as strategic M&A.* Policy to maintain or increase the dividend per share compared to the previous fiscal year. 2. Dividend payout ratio = DPS / EPS *Revised forecast for FY03/26 3. Total payout ratio = (Total dividends + Total share buybacks) / Net income *Forecast for total dividends and net income 4. Past stock splits are taken into account for the DPS calculation. 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 29.5 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% 34.7% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 DPS (JPY) Payout ratio *4 Topic: Revision to Dividend Forecast
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12 © SMS Co., Ltd. 02References
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13 © SMS Co., Ltd. Mission and Strategy
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14 © SMS Co., Ltd. Mission
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15 © 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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16 © 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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17 © 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, registered 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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18 © 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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19 © SMS Co., Ltd. Issues in an Aging Society and Our Solutions
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20 © 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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21 © 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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22 © 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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23 © 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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24 © 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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25 © 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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26 © 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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27 © 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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28 © SMS Co., Ltd. Growth Track
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29 © 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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30 © 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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31 © SMS Co., Ltd. Career Strategy
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32 © 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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33 © 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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34 © SMS Co., Ltd. 1.57 1.60 1.63 1.66 1.66 1.68 1.68 1.73 1.75 11.0% 10.8% 10.9% 10.9% 10.9% 10.7% 11.5% 10.6% 11.3% 2013 2014 2015 2016 2017 2018 2019 2020 2023 2040 0.0 1.0 2.0 3.0 4.0 5.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.0 1.0 2.0 3.0 4.0 5.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1.71 1.77 1.84 1.90 1.95 2.03 2.11 2.12 2.15 2.15 2.13 2.13 16.6% 16.5% 16.5% 16.7% 16.2% 15.4% 15.4% 14.9% 14.3% 14.4% 13.1% 12.4% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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”, ”Survey of institutions and establishments for long-term care”, 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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35 © 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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36 © 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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37 © 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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38 © 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. Renewed to "Wellme Job," a cross-occupational direct recruiting platform, from July 2025. RAG for PT/OT/ST RAG for care managers Direct recruiting for care workers*4 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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39 © SMS Co., Ltd. Elderly/Disability Care Operators (Kaipoke) Strategy
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40 © 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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41 © 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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42 © SMS Co., Ltd. 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 care/support need*1 Average annual rate of increase: 2.0% (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: 2.2% (in thousands) Operators that Kaipoke targets*3 Operators that Kaipoke does not target 4,216 4,349 4,456 4,560 4,655 4,729 4,808 4,908 4,970 5,000 5,067 1,622 1,709 1,748 1,760 1,758 1,853 1,879 1,910 1,926 1,944 2,0165,838 6,058 6,204 6,320 6,413 6,582 6,686 6,818 6,896 6,944 7,083 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 162 172 179 186 189 192 194 197 200 204 206 207 48 51 53 54 55 56 57 57 58 58 59 59 210 223 232 239 244 248 251 254 258 262 264 266 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
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43 © 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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44 © SMS Co., Ltd. 46 51 58 63 67 71 75 121 129 137 144 150 34 35 38 40 43 45 48 10 10 12 13 13 80 86 96 103 110 116 123 131 139 148 156 163 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 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” Average number for each fiscal year up to FY2019, as of March 31 from FY2020 onwards 3. Revamped from "PROJECT RIN" in June 2025. 4. Kaipoke and Kabenashi Cloud 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. 5. 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 Kabenashi Cloud, but the number of individual offices is unknown prior to FY 2019, so they are not included in "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. 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: 6.5% Number of welfare service offices for persons with disabilities *2 (in thousands) Average annual rate of increase: 6.7% Operators that Kaipoke and Kabenashi Cloud*3 targets*4*5 Operators that Kaipoke and Kabenashi Cloud does not target 815 881 949 1,020 1,092 1,163 1,229 1,277 1,363 1,447 1,543 1,633 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
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45 © 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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46 © 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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47 © SMS Co., Ltd. Strategy of Elderly/Disability Care Operators Business 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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48 © SMS Co., Ltd. 14,900 16,800 18,800 20,650 22,850 24,900 346,516 373,409 404,099 423,967 449,013 500,827 0 100,000 200,000 300,000 400,000 500,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 FY19 FY20 FY21 FY22 FY23 FY24 Growth of Elderly/Disability Care Operators Business • The number of customers and ARPA*1 have shown consistent growth, driven by the wider adoption of Kaipoke, the development and cross-selling of paid options, and our expansion into new services (M&A matching, RAG*2 for persons with disabilities, and business support systems for disability welfare service operators). • With 15-20% average annual revenue growth, alongside margin expansion built upon our high recurring revenue ratio, we consistently achieve the "Rule of 40,"*3 a key benchmark for healthy SaaS businesses. 1. ARPA: Average Revenue Per Account. Calculated by dividing total annual revenue by the average number of companies during the period. 2. RAG: Recruiting agent service 3. A metric used to evaluate the health of a SaaS business, based on the principle that the sum of its revenue growth rate and profit margin should be 40% or more. 4. Number of companies at period-end 5. CAGR: Compound Annual Growth Rate ARPA (JPY) Number of Customers Number of Customers*4 and ARPA CAGR: +10.8% CAGR*5: +7.6%
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49 © SMS Co., Ltd. New Business (Healthcare) Strategy
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50 © 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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51 © 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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52 © 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. 5.19 million Risk of lifestyle-related diseases Lifestyle-related diseases 1. QOL: Quality of life 2. Subjects are 40 – 74 years old. MHLW, "2023 Implementation of specified health checkups and specific health guidance" 3. MHLW, "2023 Patient survey"
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53 © 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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54 © 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 registered dietitians. 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 Registered 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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55 © 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 registered dietitians/dietitians and web community for registered dietitians/dietitians 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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56 © 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 and web community for nurses and nursing students Online interview Operation support Visits and workplace monitoring Industrial nurses 1. RAG: Recruiting agent service Industrial physicians
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57 © 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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58 © 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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59 © SMS Co., Ltd. New Business (Senior Life) Strategy
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60 © 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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61 © 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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62 © 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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63 © 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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64 © 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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65 © SMS Co., Ltd. Overseas Strategy
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66 © 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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67 © SMS Co., Ltd. Medical Platform Business
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68 © 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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69 © 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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70 © 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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71 © 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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72 © SMS Co., Ltd. Global Career Business
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73 © 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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74 © 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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75 © 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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76 © 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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77 © SMS Co., Ltd. Appendix
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78 © 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 Website Website Career partner Direct recruiting email
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79 © 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 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 iPads to care workers, allowing them to complete documentation on-site. • 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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80 © 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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81 © 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 Fee Optimized marketing solutions Medical/healthcare information via various channels Publication, Web, event etc.
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82 © 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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83 © 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 HCPs. • 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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84 © 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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85 © SMS Co., Ltd. Segment Category Services Elderly Care Career RAG*3 services Others Medical Care Career RAG services Others Business Portfolio*1 – Career*2 RAG for care managers, social workers, and disability care workers RAG for PT/OT/ST Certification course information RAG for nurses RAG for medical technologists RAG for registered dietitians/dietitians Workplace assessment tool for nurses RAG for radiological technologists RAG for clinical engineers Web community for nurses and nursing students Employment support for nursing students Scholarship information portal Cross-occupational DR*3 platform School for workers in the elderly care field RAG for care workers RAG for childcare workers DR for Judo therapists etc. National examination reference book for Judo therapists etc. RAG for Judo therapists etc. 1. As of January 2026 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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86 © 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 January 2026 2. RAG: Recruiting agent service Remote industrial health service Web community for registered dietitians/dietitians Information portal of industrial health service Health maintenance/ promotion support for women 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 Medical Marketing Clinical Decision Support Career related service for nurses (South Korea) Cross-border RAG 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 for construction industry Solution for balancing work with family care
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87 © SMS Co., Ltd. RAG*1 for care managers, social workers, and disability care workers: Care Jinzai-bank May 2003 Information service on qualification courses for elderly/medical care: Shikatoru Nov. 2003 Cross-occupational DR*1 platform: Wellme Job Mar. 2004 (Renewed from Kaigo Job, DR for care workers in Jul. 2025) RAG for PT/OT/ST: PT/OT Jinzai-bank Sep. 2008 RAG for care workers: Kaigo Job Agent Aug.2014 School for workers in the elderly care field: 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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88 © 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 for pharmacists: Yaku Kyari Agent Apr. 2007 RAG for doctors: M3 Career Agent Aug. 2006 RAG for medical technologists: Kensagishi Jinzai-bank Sep. 2013 RAG for registered dietitians/dietitians: Eichie Tenshoku May 2012 (Renamed from Eiyoshi Jinzai-bank in Dec. 2025) Employment support for nursing students: Nurse-senka Shushoku Aug. 2009 (Renamed from Nurse-senka Shushoku-navi in Aug. 2024) RAG for radiological technologists: Hoshasengishi Jinzai-bank Jun. 2014 RAG for clinical engineers: Kogakugishi Jinzai-bank Jul. 2014 Web community for nurses and nursing students: Nurse-senka Aug. 2006 RAG 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 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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89 © SMS Co., Ltd. History of Service Launches – Elderly/Disability Care Operators, Overseas Medical Marketing, Clinical Decision Support : MIMS Oct. 2015 Management support platform for elderly/disability care operators: Kaipoke Jul. 2006 (Kabenashi Cloud *1 also offered from Dec. 2024) Career related service for nurses: Nurscape Sep. 2011 Cross-border RAG for Healthcare Professionals Jun. 2017 Information portal for management of elderly care operators: Kaigo Keiei.com Dec. 2020 Research and information on the aging society: Korei Shakai Labo Nov. 2020 1. Renewed from "PROJECT RIN" in June 2025. 2. RAG: Recruiting agent service 3. Renewed from “DEIGO Kyujin-navi” and “DEIGO Shuroshien-navi” in September 2025. FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10FY09FY08FY07~FY06 FY24FY20 FY21 FY22 FY23 Elderly/Disability Care OperatorsOverseas RAG*2 for persons with disabilities: Kabenashi Kyujin-navi*3 Sep. 2024 Information service on employment support offices for persons with disabilities: Kabenashi Shuroshien-navi *3 Sep.2024
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90 © 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 Quit-smoking support using ICT: Kinen Shido Service Jul. 2018 Information portal of dementia: Ninchisho Net Aug. 2011 Web community for registered dietitians/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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91 © SMS Co., Ltd. Solution for balancing work with family care: Anshin Kaigo for biz Sep. 2023 History of Service Launches – New Business (Senior Life) New Business (Senior Life) FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10FY09FY08FY07~FY06 FY24FY20 FY21 FY22 FY23 1. RAG: Recruiting agent service 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) RAG*1 for construction industry: Hapisumu Sumai Career Aug. 2022
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92 © SMS Co., Ltd. Medium-Term Targets • 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% or higher 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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93 © 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 29.5 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% 34.7% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 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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94 © 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 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 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 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 (in JPY millions)
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95 © 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 45% Domestic Institutional Investors 18% Founder 19% Individual Investors 7% Directors, Employees and Shareholding associations 1% Treasury stock 6% Others 5% As of December 31, 2025: As of September 30, 2025 : Number of shareholders 8,994 Category # of Employees Consolidated 4,731 Japan 3,587 Overseas 1,144
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96 © 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 December 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 1. https://global.bm-sms.com/ir/management/risk_factor/