SMS CO., LTD.

The management support platform for long-term care/disability welfare providers, "Caipoke," has one of the industry's largest bases, with 62% of home-visit care providers connected to it. Built around an insurance claims function, it provides more than 40 services—including recruitment, procurement, finance, and M&A—on a one-stop basis. Owing to growth in the member base and expanded use of factoring and paid options, segment revenue for FY2026 (ending March 2026) reached ¥13,715 million (up 14.7% year on year), maintaining high growth.

Since its founding in 2003, the company has built cross-occupational recruitment placement services, direct recruiting, and qualification schools spanning long-term care, nursing, childcare, rehabilitation, dietitians, and other professions. Career segment revenue for FY2026 (ending March 2026) was ¥38,276 million (up 5.7% year on year), accounting for approximately 59% of total company revenue, with both Kaigo Career and Iryo Career growing amid providers' strong hiring appetite. The job-seeker and provider database accumulated over more than 20 years of track record is an asset that competitors would find difficult to replicate in a short period.

Operating cash flow for FY2026 (ending March 2026) remained at a high level of ¥8,799 million (a substantial increase from ¥5,806 million in the prior period). Under a progressive dividend policy targeting a consolidated dividend payout ratio of 30%, the company plans to increase its per-share dividend to ¥30.50 in FY2027 (ending March 2026), and during the current period it invested ¥3,999 million in share buybacks. Even after recording a net loss for the period due to overseas impairment, the stable operating cash flow generation capacity supports the continuation of shareholder returns.

The company will actively recruit Career Partners year-round, focusing on the nursery care and long-term care/disability welfare fields, while pursuing productivity gains through AI-driven matching processes. For Direct Recruiting, upfront investment is being made to strengthen the sales structure, awareness initiatives, and expand customer success personnel. Approximately ¥2.0 billion in upfront investment is planned for FY2027 (ending March 2027).

The company is advancing the development of high-value-added products through migration to "Caipoke Connect" and the addition of AI functionality, including through capital and business alliances with external parties. Strengthening of the sales structure for "Kabenashi Cloud" is being carried out in parallel. In FY2026 (ended March 2026), the long-term care and disability welfare provider segment grew steadily, up 14.7% year on year.

Following the shortfall in the MIMS Group's performance against plan, the company is conducting a fundamental review of the business based on criteria such as future growth potential and profitability. All options, including alliances with other companies and the use of external capital, are under consideration. In FY2026 (ended March 2026), an impairment loss of ¥22,957 million was recorded, and substantially all of the related intangible fixed assets have now been amortized.

Amid the continuing impact on cross-border travel from the worsening situation in the Middle East, the company aims to achieve growth by expanding its medical business partners and strengthening its presence in other areas such as Europe, the US, and Australia. Given the growing global demand for medical personnel, the company judges that there is substantial room for long-term growth.

Following the transition to a new management structure on January 1, 2026, the company will, from FY2027 (ending March 2027), provide business explanations and performance disclosures under three segments: "Career," "Long-Term Care and Disability Welfare Management Support," and "Overseas." This is intended to improve transparency in management oversight and clarify the responsibilities of each business.