Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2020
(Based on Japanese GAAP)
January 29, 2021
Company name:SMS CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

2175
CEOURLhttps://www.bm-sms.co.jp/Natsuki Goto

Inquiries:
CFO
Scheduled date to file Quarterly Securities Report:Masato Sugizaki
February 12, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

Yes

TEL

03-6721-2400(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended December 31, 2020
Nine months ended December 31, 2019

Millions of yen
26,36625,300Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
4.2
3,220
54.2
4,245
24.5
2,868
14.0
14.9
2,088
(8.5)
3,410
1.4
2,516
5.3

Earnings per share

Diluted earnings per share

Yen
32.94
28.92

Nine months ended December 31, 2020
Nine months ended December 31, 2019

Yen
32.79
28.79

(2) Consolidated financial position
Total assets
As of December 31, 2020
As of March 31, 2020Net assets

Millions of yen
51,22950,996Equity ratio

Millions of yen
20,99819,398

%
40.5
37.7

2. Cash dividends
Annual dividends per share

Year ended March 31, 2020
Year ending March 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
0.00
0.00

Yen
––

Yen
8.50

Yen
8.50

––

Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
37,436
6.5
5,028
1.9
6,459
1.6
4,785
0.5
54.95

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2020

87,105,600 shares As of March 31, 2020

87,057,600 shares

Number of treasury shares at the end of the period
As of December 31, 2020

491 shares As of March 31, 2020

445 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2020

87,077,811 shares Nine months ended December 31, 2019

287,025,826 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of December 31, 2020

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

11,091
5,213

13,303
4,141

1430

1937

Accounts receivable - otherPrepaid expenses

6,183
664

6,689
747

Other
Allowance for doubtful accounts

18(113)60(125)

23,102

24,875626(291)

620
(312)

335

307

806(545)802(542)

Tools, furniture and fixtures, net

261

260

Machinery, equipment and vehicles
Accumulated depreciation

37(17)

35(18)

Work in process
Supplies

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Tools, furniture and fixtures
Accumulated depreciation

20

17

Right-of-use assets
Accumulated depreciation

Machinery, equipment and vehicles, net

481
(91)

492
(200)

Right-of-use assets,net

389

291

1,006

876

Goodwill
Software10,148
1,637

9,211
2,124

Trademark right
Customer-related assets

9,126
1,825

8,813
1,592

0

0

22,73821,740Investment securities
Deferred tax assets

2,225
873

1,831
920

Leasehold and guarantee deposits
Other

1,039
11977
8

Total investments and other assets

4,149

3,736

27,89326,35450,996

51,229Total property, plant and equipment
Intangible assets

Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2020

As of December 31, 2020

Liabilities
Current liabilities
Accounts payable - trade

314

259

2,487
7,711

2,479
8,999

Accrued expenses
Income taxes payable

451
534

860
232

Accrued consumption taxes
Advances received

536
725

506
1,095

Deposits received
Provision for bonuses

84
600

40373

ProvisionForRepayment
Lease obligations

242
112

205
85

Other

30

32

13,831

15,170Long-term borrowings
Retirement benefit liability

15,144354

12,839115

Deferred tax liabilities
Lease obligations

1,994
260

1,884
214

115

17,766

15,06031,59730,230Share capital
Capital surplus

2,246
51

2,277
82

Retained earnings
Treasury shares

19,079(0)

21,207(0)

Total shareholders' equity

21,37623,566

Current portion of long-term borrowings
Accounts payable - otherTotal current liabilities
Non-current liabilities

Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

(0)

(0)

Foreign currency translation adjustment(2,149)(2,796)

Total accumulated other comprehensive income(2,149)(2,796)

Share acquisition rights
Total net assets
Total liabilities and net assets

4171

228

19,39820,99850,996

51,229

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

Net sales
Cost of sales

25,3002,874

26,3662,801

Gross profit

22,42623,564

Selling, general and administrative expenses

20,337

20,344

Operating profit

2,088

3,220

15
1,326–
1,095

62

68

1,403

1,163

Foreign exchange losses
Interest expenses

–7656
70

Other

511Non-operating income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income

81

138

3,410

4,245–

0–

0Extraordinary losses
Loss on sales and retirement of non-current assets

1171

Loss on valuation of investment securities
Loss on termination of retirement benefit plan––

3121

Event cancellation loss–

11

Total extraordinary losses
Profit before income taxes
Income taxes

11207

3,399

4,038

883

1,169

Profit

2,516

2,868

Profit attributable to owners of parent

2,516

2,868

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

2,516

2,868

0
(632)

(0)
(642)

(4)

(4)

(637)

(646)

1,879

2,221

1,879

2,221––

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests6