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 Three Months Ended June 30, 2024
(Based on Japanese GAAP)
July 26, 2024
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 commence dividend payments:

Masato Sugizaki–Preparation of supplementary material on financial results:
Holding of financial results meeting:

YesYesTEL

03-6721-2400(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Three months ended June 30, 2024
17,42614.7
3,000 (19.5)
4,114 (10.7)
3,163(6.7)
Three months ended June 30, 2023
15,194
21.4
3,729
20.8
4,609
13.9
3,389
13.9
Earnings per share

Diluted earnings per share

Yen
36.71
38.89

Three months ended June 30, 2024
Three months ended June 30, 2023

Yen
36.70
38.70

(2) Consolidated financial position
Total assets

Net assets

Millions of yen
74,75872,475

As of June 30, 2024
As of March 31, 2024

Equity ratio

Millions of yen
45,39544,284%60.360.7

2. Cash dividends
Annual dividends per share

Year ended March 31, 2024
Year ending March 31, 2025

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
0.00

Yen–

Yen
20.00

Yen
20.00

0.00

–––

Year ending March 31, 2025 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Net sales
Full year

Millions of yen
65,665Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profitEarnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
21.7
9,096
10.0
11,002
11.1
8,018
10.9
93.03

1

4. Notes(1) Significant changes in the scope of consolidation during the three months ended June 30, 2024:

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
NoChanges in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

87,561,600 shares As of March 31, 2024

87,561,600 shares

Number of treasury shares at the end of the period
As of June 30, 2024

1,644,032 shares As of March 31, 2024

812,832 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024

86,185,768 shares Three months ended June 30, 2023

287,154,946 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Work in process
Supplies
Accounts receivable - otherPrepaid expenses
OtherAllowance for doubtful accounts
Total current assets

18,236
8,228

18,237
7,815

1325

23
31

10,406
1,038

11,8781,285

94(267)134(288)

37,775

39,116

1,131(509)

1,260(550)

Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net

621

710

1,097(877)

1,190(931)

Tools, furniture and fixtures, net

220

259

Machinery, equipment and vehicles
Accumulated depreciation

20(15)

21(16)

Tools, furniture and fixtures
Accumulated depreciation

44

Right-of-use assets
Accumulated depreciation

Machinery, equipment and vehicles, net

657(371)

685
(423)

Right-of-use assets, net

285

262

1,132

1,236

Goodwill
Software

9,752
5,454

10,0895,753

Trademark right
Customer-related assets

11,814
1,143

12,6121,139

0

028,16529,594

Investment securities
Deferred tax assets

2,652
1,262

1,978
1,323

Leasehold and guarantee deposits

1,486

1,508

Total investments and other assets

5,402

4,810

34,69935,641

72,47574,758

Total 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, 2024

As of June 30, 2024

LiabilitiesCurrent liabilities
Accounts payable - trade

460

360

Current portion of long-term borrowings
Accounts payable - other

1,901
12,7301,901
13,758

Accrued expenses
Income taxes payable

1,059
1,344

1,512
1,074

Accrued consumption taxes
Contract liabilities

930
1,205

1,035
1,469

Deposits received
Provision for bonuses

183
909

150
479

Lease liabilities
Other

160
439

155
480

Total current liabilities

21,32522,377

Non-current liabilities
Long-term borrowings

4,251

4,251

203
2,286

208
2,420

121
2102
2

6,865

6,985

28,19029,362

Shareholders' equity
Share capital

2,551

2,551

Capital surplus
Retained earnings

313
39,111

262
40,539Treasury shares(1,904)(3,713)

Total shareholders' equity

40,071

39,640

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

322
3,607

260
5,199

Total accumulated other comprehensive income

3,930

5,460

282

295

44,28445,39572,47574,758Retirement benefit liability
Deferred tax liabilities
Lease liabilities
OtherTotal non-current liabilities
Total liabilities
Net assets

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets

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

Three months ended

June 30, 2023

June 30, 2024

Net sales
Cost of sales

15,194
1,392

17,426
1,596

Gross profit

13,802

15,830

Selling, general and administrative expenses

10,073

12,829Operating profit

3,729

3,000

Share of profit of entities accounted for using equity method
Foreign exchange gains

881
0

1,099
21

Other

1417

Total non-operating income

897

1,138

Interest expenses
Other

16020
4

Total non-operating expenses

1624

4,609

4,114

Gain on sale of non-current assets

00

Total extraordinary income

00

Loss on sale and retirement of non-current assets
Loss on withdrawal from business

5–

430

Total extraordinary losses

534

Profit before income taxes

4,604

4,079

Income taxes

1,214

916

Profit

3,389

3,163

Profit attributable to owners of parent

3,389

3,163

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

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

ProfitOther comprehensive income
Foreign currency translation adjustment
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

Three months ended

Three months ended

June 30, 2023

June 30, 2024
3,389

3,163

135

1,578

(18)

(48)

117

1,530

Comprehensive income

3,507

4,693

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,5074,693––

Comprehensive income attributable to non-controllinginterests

6