Komori
Financial Results Presentation2175SMS CO.,LTD.Information and Communications, Services and Others

Supplementary Explanation of the “Roadmap for Maximizing Corporate Value”

The company provided additional explanations regarding the roadmap for maximizing corporate value announced on 28 April, including the background to its formulation, the basis for its performance targets, its business exit and investment policies, candidates for director, and responses to questions from investors. The company plans to formulate and publish its medium-term management plan by the time it discloses its results for the fiscal year ending March 2027.

Worth reading
62In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
280
¥100 million (EBITDA target for the fiscal year ending March 2031)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Medium-Term Management Plan Presentation10 items taken from the company’s own explanation
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Below the initial plan for the fiscal year ending March 2026
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Questions Difference between the roadmap and the medium-term management plan / Answer The roadmap is a preliminary document indicating the company’s long-term direction and growth potential, while the medium-term management plan will refine business-specific KPIs, investment plans, and capital policies.
  2. Questions Basis for EBITDA of ¥28.0 billion for the fiscal year ending March 2031 / Answer Based on improvements already confirmed, the company incorporated improvements in each business’s conversion rate, productivity, number of job openings, subscriber base, and ARPA, among other factors.
  3. Questions Reason for raising the ROE target to 30% / Answer Net assets declined due to impairment losses on overseas businesses, and the company judged that achieving the target in the fiscal year ending March 2031 was within reach as a result of business growth.
  4. Questions Status of business exits and sales / Answer The company decided to exit several overseas businesses, its domestic elderly-care and frailty business, and its recruitment advertising business for therapists. It is also considering sales and other options.
  5. Questions Progress in new businesses / Answer The company plans to enter the foreign care personnel placement business during the second quarter of the fiscal year ending March 2026.
  6. Questions Timing of the transition to Kaipoke Connect / Answer The company plans to complete the transition in 2029. During the transition period, depreciation and amortization expenses will be higher due to double depreciation and amortization.
  7. Questions Shareholder Return Policy / Answer The company will combine dividends with flexible share repurchases, but the specific size and timing have not been disclosed.
  8. Questions CFO successor / Answer A new CFO is expected to join the company in August 2026.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Career business conversion rate
    AssumptionsImproved
  • Number of DR job openings and application rate
    AssumptionsIncrease and improvement
  • Kaipoke subscribers and ARPA
    AssumptionsIncrease and rise
  • Number of CP hires (fiscal year ending March 2027)465 People, approximately
New initiatives
  • Establishment and operation of the Corporate Value Improvement Committee (CVIC)
  • Review of the board composition, including 4 candidates for newly appointed outside directors
  • Development of a process for evaluating the business portfolio and determining whether to continue each business
  • Investment in technology and data utilization
  • Establishment of a framework for evaluating and promoting M&A
  • Segment disclosures beginning with the fiscal year ending March 2027
  • Entry into the foreign care personnel placement business
  • Suzumura (鈴村氏) is expected to become a technical adviser
  • Expansion of Kaipoke’s AI functions through a partnership with ウェルモ社
Key KPIsA metric the company considers important as a management benchmark.
  • One-on-one meetings with institutional investors and sell-side analysts251 Engagements
  • DR revenue (fiscal year ending March 2026)20 Hundreds of millions of yen
  • Disability welfare SaaS revenue (fiscal year ending March 2026)5 Approximately ¥100 million
  • Disability welfare SaaS market growth rate10 CAGR%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Kaipoke subscribersUpward trend
    Year on year against the same period last yearImproved
  • Kaipoke ARPATrending higher
    Year on year against the same period last yearImproved
Medium-term management plan targets
  • EBITDA
    Target value280
    Target fiscal yearFiscal year ending March 2031
  • ROE
    Target value30
    Target fiscal yearFiscal year ending March 2031
Financial targets
  • ROE
    Target value30
  • Net debt/EBITDA borrowing limit
    Target value3
Market Size / Share
The disability welfare market is expected to grow at a 10% CAGR through the fiscal year ending March 2031. The size and share of other markets are not disclosed.
Acquisition of treasury shares
The specific size and timing have not been disclosed. The policy is to conduct buybacks flexibly.
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Self-assessment against the planBelow the initial plan for the fiscal year ending March 2026
Key KPIsIndicator name One-on-one meetings with institutional investors and sell-side analysts / Value 251 Engagements / Year on year against the same period last year Not disclosed, Indicator name DR revenue (fiscal year ending March 2026) / Value 20 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Disability welfare SaaS revenue (fiscal year ending March 2026) / Value 5 Approximately ¥100 million / Year on year against the same period last year Not disclosed, Indicator name Disability welfare SaaS market growth rate / Value 10 CAGR% / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Kaipoke subscribers / Value Upward trend / Year on year against the same period last year Improved, Indicator name Kaipoke ARPA / Value Trending higher / Year on year against the same period last year Improved
Assumptions Underlying the Business OutlookItem Career business conversion rate / Assumptions Improved, Item Number of DR job openings and application rate / Assumptions Increase and improvement, Item Kaipoke subscribers and ARPA / Assumptions Increase and rise, Item Number of CP hires (fiscal year ending March 2027) / Value 465 People, approximately
Medium-term management plan targetsIndicator EBITDA / Target value 280 Hundreds of millions of yen / Target fiscal year Fiscal year ending March 2031, Indicator ROE / Target value 30 % / Target fiscal year Fiscal year ending March 2031
Financial targetsIndicator ROE / Target value 30 % / Actual value Not disclosed, Indicator Net debt/EBITDA borrowing limit / Target value 3 times / Actual value Not disclosed
Acquisition of treasury sharesThe specific size and timing have not been disclosed. The policy is to conduct buybacks flexibly.
Market Size / ShareThe disability welfare market is expected to grow at a 10% CAGR through the fiscal year ending March 2031. The size and share of other markets are not disclosed.
Key points of the Q&AQuestions Difference between the roadmap and the medium-term management plan / Answer The roadmap is a preliminary document indicating the company’s long-term direction and growth potential, while the medium-term management plan will refine business-specific KPIs, investment plans, and capital policies., Questions Basis for EBITDA of ¥28.0 billion for the fiscal year ending March 2031 / Answer Based on improvements already confirmed, the company incorporated improvements in each business’s conversion rate, productivity, number of job openings, subscriber base, and ARPA, among other factors., Questions Reason for raising the ROE target to 30% / Answer Net assets declined due to impairment losses on overseas businesses, and the company judged that achieving the target in the fiscal year ending March 2031 was within reach as a result of business growth., Questions Status of business exits and sales / Answer The company decided to exit several overseas businesses, its domestic elderly-care and frailty business, and its recruitment advertising business for therapists. It is also considering sales and other options., Questions Progress in new businesses / Answer The company plans to enter the foreign care personnel placement business during the second quarter of the fiscal year ending March 2026., Questions Timing of the transition to Kaipoke Connect / Answer The company plans to complete the transition in 2029. During the transition period, depreciation and amortization expenses will be higher due to double depreciation and amortization., Questions Shareholder Return Policy / Answer The company will combine dividends with flexible share repurchases, but the specific size and timing have not been disclosed., Questions CFO successor / Answer A new CFO is expected to join the company in August 2026.
New initiativesEstablishment and operation of the Corporate Value Improvement Committee (CVIC), Review of the board composition, including 4 candidates for newly appointed outside directors, Development of a process for evaluating the business portfolio and determining whether to continue each business, Investment in technology and data utilization, Establishment of a framework for evaluating and promoting M&A, Segment disclosures beginning with the fiscal year ending March 2027, Entry into the foreign care personnel placement business, Suzumura (鈴村氏) is expected to become a technical adviser, Expansion of Kaipoke’s AI functions through a partnership with ウェルモ社
Items this document does not state (20)
Fiscal Period CoveredNet SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSegment resultsBreakdown of Factors Affecting the ChangeNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioCapital expendituresOrders received and order backlog

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company received many questions from shareholders and investors about the background to the roadmap and its feasibility. It disclosed the supplementary explanation to promote understanding of the roadmap and gain investor confidence.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Explanation of the “Roadmap for Maximizing Corporate Value” | SMS CO.,LTD. (2175) timely disclosure | Komori