SMS (2175) investor relations material

Executive summary

• Net sales for Q1 FY03/27 rose 8.2% YoY to ¥20.2 billion, with EBITDA up 10%, operating income up 19%, and ordinary profit up 13.5%; profit attributable to owners of parent declined 5.4% to ¥3.73 billion due to overseas tax timing.

• Comprehensive income increased 55.7% YoY to ¥3,947 million.

• Career and Elderly/Disability Care Management Support segments drove growth, while Overseas segment's EBITDA loss narrowed.

• Launched Corporate Value Improvement Committee to address business portfolio, growth strategy, governance, and IR/capital markets, with a medium-term management plan to be disclosed by end-April 2027.

• Segment structure revised to three categories: Career, Elderly/Disability Care Management Support, and Overseas.

Financial highlights

• Q1 FY03/27 net sales: ¥20.2 billion (+8% YoY); EBITDA: ¥5.19 billion (+10% YoY); operating income: ¥4.31 billion (+19% YoY); ordinary income: ¥5.43 billion (+14% YoY); net income: ¥3.73 billion (-5% YoY).

• Gross profit for the quarter was ¥18,403 million, up from ¥16,936 million YoY.

• Basic and diluted EPS for the quarter were ¥45.42, down from ¥47.17 YoY.

• Total assets as of June 30, 2026, were ¥54,352 million, up from ¥52,774 million at the previous fiscal year-end.

• Net assets increased to ¥28,257 million, with an equity-to-asset ratio of 51.6%.

Outlook and guidance

• Full-year FY03/27 plan expects net sales of ¥71,834 million (+11% YoY), operating profit of ¥6,801 million (+0.2%), ordinary profit of ¥8,731 million (+0.1%), and profit attributable to owners of parent of ¥6,165 million.

• Profit expected in line with initial plan, with anticipated EBITDA decline of 9% and operating income roughly flat YoY.

• Continued investment and active hiring planned from Q2 onward; EBITDA growth in Career segment expected to be limited for the remainder of the year.

• No changes to previously announced earnings or dividend forecasts.

• Medium-term management plan to be disclosed by end-April 2027, with progress updates at Q2 and Q3 results.