SMS : FY03-22 SMS Presentation Material for IR

SMS Co., Ltd. (2175 TSE Prime Market)

Earnings Presentation for Investors, FY03/2022

April 28, 2022

Table of Contents

01	FY03/2022 Consolidated Financial Results	p.3
02	FY03/2023 Forecast	p.8
03	References	p.14
Mission and Strategy	p.15
Appendix	p.78

01

FY03/2022 Consolidated Financial Results

FY03/22 Consolidated Financial Results (Full-year)

• • Achieved growth in both sales and profits for the 18th consecutive year.

• • FY03/22 profits outperformed our forecast, although the COVID-19 impact exceeded initial expectation.

FY03/22 [JPY million]

FY03/22 Career Segment (Full-year)

• • The COVID-19 pandemic negatively affected both Elderly Care Career and Medical Care Career and temporarily decreased the growth rates.*1

• • Significant surges in new cases from July to September, 2021 and from January to March, 2022 caused a more negative impact on our business than expected.

• • With the expanding demands for medical/ elderly care professionals due to the aging of the population as well as the recovery of business operators' willingness to hire professionals, we hired more career partners than originally budgeted, aiming for boosting the growth rate from FY03/23 onwards.

Sales, FY03/22 [JPY million]

FY03/21	FY03/22	YoY
Actual*2	Actual	Change
Elderly Care Career	10,948	10,487	(4%)
Medical Care Career	12,521	13,011	+4%
Total	23,469	23,498	+0%

1. The sales of Elderly Care Career decreased by JPY 400 million due to the termination of temporary staffing service for care workers in August 2020. The sales of Medical Care Career decreased by JPY 180 million due to changes in revenue recognition standards, which were applied from the beginning of FY03/22.

2.

The stress check service was transferred from Career Segment to New Business Segment, and the FY03/21 sales were reclassified accordingly.