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, 2021
(Based on Japanese GAAP)
July 30, 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
August 6, 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 three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2021
Three months ended June 30, 2020Millions of yen
10,838
10,539Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
2.8
2,547
14.2
3,319
10.0
2,476
12.5
12.4
2,230
55.6
3,018
30.0
2,201
22.3

Earnings per share

Diluted earnings per share

Yen
28.43
25.28

Three months ended June 30, 2021
Three months ended June 30, 2020

Yen
28.29
25.18

(2) Consolidated financial position
Total assets
As of June 30, 2021
As of March 31, 2021

Net assets

Millions of yen
53,41149,444Equity ratio

Millions of yen
25,66322,658

%
47.5
45.3

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
0.00

Yen
–

Yen
9.50

Yen
9.50

0.00

–––

Year ending March 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
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
40,043
11.4
6,205
13.4
7,352
10.5
5,281
10.0
60.62

1

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2021
(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:

Yes
No

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 June 30, 2021

87,123,600 shares As of March 31, 2021

87,109,600 shares

Number of treasury shares at the end of the periodAs of June 30, 2021

527 shares As of March 31, 2021

491 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2021

87,123,085 shares Three months ended June 30, 2020

287,057,488 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of June 30, 2021

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

10,538
4,933

13,448
4,515

16
31

29
42

6,324
598

6,915
598

Prepaid expensesOther

808
156

862
73

Allowance for doubtful accounts

(188)

(191)

23,21826,295619

698

Accumulated depreciation

(324)

(351)

Buildings, net

295

347

Work in process
Supplies
Accounts receivable - other
Income taxes receivable

Total current assets
Non-current assets
Property, plant and equipment
Buildings

Tools, furniture and fixtures

792

846

Accumulated depreciation

(552)

(575)

Tools, furniture and fixtures, net

239

270

Machinery, equipment and vehicles

36

38

Accumulated depreciation

(20)

(22)

Machinery, equipment and vehicles, net

16

16

Right-of-use assets

618

675

Accumulated depreciation

(230)

(290)

Right-of-use assets,net

387

384

939

1,019

Total property, plant and equipment
Intangible assets
Goodwill

8,834

9,205

SoftwareTrademark right

2,355
8,621

2,520
9,222

Customer-related assets
Other

1,502
0

1,547
0

Total intangible assets

21,31322,495Investments and other assets
Investment securities

1,975

1,545

879
1,110

928
1,127

7–

Deferred tax assets
Leasehold and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets

3

3,972

3,602

26,225

27,11649,44453,411

(Millions of yen)
As of March 31, 2021

As of June 30, 2021

Liabilities
Current liabilities
Accounts payable - trade

258

211

2,479
7,750

2,094
8,807

Accrued expenses
Income taxes payable

438
374

683
797

Accrued consumption taxes
Advances received

505
869

692
–

Contract liabilities
Deposits received

–
147

1,127
206

Provision for bonuses
ProvisionForRepayment

669
233

308
–

Lease obligations
Other115
33

113
309

Total current liabilities

13,875

15,353

Non-current liabilities
Long-term borrowings

10,64410,003

149
1,830

163
1,943

281
3282
2

12,90912,39526,78527,748

Shareholders' equity
Share capital

2,281

2,289

Capital surplus
Retained earnings

85
23,14094
24,767(0)(0)

25,50627,150

Valuation difference on available-for-sale securities
Foreign currency translation adjustment0(3,107)0(1,767)

Total accumulated other comprehensive income(3,107)(1,767)259

280

22,65825,66349,44453,411

Current portion of long-term borrowings
Accounts payable - other

Retirement benefit liability
Deferred tax liabilities
Lease obligations
Other
Total non-current liabilities
Total liabilities
Net assets

Treasury shares
Total shareholders' equity
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, 2020

June 30, 2021

Net sales
Cost of sales

10,539932

10,838949

Gross profit

9,607

9,889

Selling, general and administrative expenses

7,376

7,341

Operating profit

2,230

2,547

Share of profit of entities accounted for using equity method
Other

797
23806
11

Total non-operating income

820

817

2421

Foreign exchange losses
Other

7020
3

Total non-operating expenses

3245

3,018

3,319

Gain on sale of non-current assets

00

Total extraordinary income

00

Loss on sale and retirement of non-current assets
Event cancellation loss

44
66–

Total extraordinary losses

51

6

2,966

3,313

Non-operating income

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes
Income taxes

765

836

Profit

2,201

2,476

Profit attributable to owners of parent

2,201

2,476

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

Three months endedThree months ended

June 30, 2020

June 30, 2021
2,2012,476(0)
(164)

0
1,329

(4)

10(169)

1,339

2,031

3,816

2,031

3,816

–

–

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

6