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 Year Ended March 31, 2021
(Based on Japanese GAAP)
April 28, 2021
Company name:SMS CO., LTD.

Stock exchange listing: Tokyo
Stock code:
2175
Representative:
Inquiries:

URL

https://www.bm-sms.co.jp/CEOCFO

Natsuki Goto
Masato Sugizaki

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 18, 2021
June 18, 2021

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

June 21, 2021
Yes

Holding of 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 year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating results
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%
Year ended March 31, 2021
35,960
2.3
5,470
10.8
6,653
4.7
4,800
0.9
Year ended March 31, 2020
35,140
14.0
4,935
4.1
6,355
6.3
4,760
12.9

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
54.86
23.1
13.2
15.2
54.45
27.5
12.9
14.0

Diluted earnings pershare

Yen
55.13
54.69

Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
49,44450,996

Millions of yen
22,65819,398Cash flows fromoperating activities
Millions of yen
6,769
5,591

Cash flows frominvesting activities
Millions of yen(1,783)(2,127)

Net assets per share%
45.3
37.7

Yen
257.14220.86(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(5,224)
10,144(3,132)
10,493

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

––

8.50
9.50

8.50
9.50

739
827

15.5
17.2

4.3
4.0

–

0.00

–––1–3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
40,043

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
11.4
6,205
13.4
7,352
10.5
5,281
10.0
60.65

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) 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(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

87,109,600 shares As of March 31, 202087,057,600 shares

Number of treasury shares at the end of the period
As of March 31, 2021

491 shares As of March 31, 2020

445 shares

Average number of shares during the period
Year ended March 31, 2021

87,085,303 shares Year ended March 31, 2020

287,033,325 shares

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

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

11,091
5,213

10,538
4,933

14
30

16
31

6,183
–

6,324
598

Prepaid expenses
Other664
18808
156

Allowance for doubtful accounts

(113)

(188)

23,102

23,218626

619

Accumulated depreciation

(291)

(324)

Buildings, net

335

295

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

806

792

Accumulated depreciation

(545)

(552)

Tools, furniture and fixtures, net

261

239

Machinery, equipment and vehicles

37

36

Accumulated depreciation

(17)

(20)

Machinery, equipment and vehicles, net

20

16

Right-of-use assets
Accumulated depreciation
Right-of-use assets,net
Total property, plant and equipment
Intangible assets
Goodwill

481

618

(91)

(230)

389

387

1,006

939

10,148

8,834

SoftwareTrademark right

1,637
9,126

2,355
8,621

Customer-related assets
Other

1,825
0

1,502
0

Total intangible assets

22,73821,313

Investments and other assets
Investment securities

2,225

1,975

873
1,039

879
1,110

117

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

34,1493,972

27,893

26,22550,99649,444

(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Accounts payable - trade

314

258

2,487
7,711

2,479
7,750

Accrued expenses
Income taxes payable

451
534

438
374

Accrued consumption taxes
Advances received

536
725

505
869

Deposits received
Provision for bonuses

84
600

147
669

ProvisionForRepayment
Lease obligations

242
112

233
115

Other

30

33

13,831

13,875Long-term borrowings
Retirement benefit liability

15,144354

10,644
149

Deferred tax liabilitiesLease obligations

1,994
260

1,830
281

113

17,766

12,90931,597

26,785

Share capital
Capital surplus

2,246
51

2,281
85

Retained earnings
Treasury shares

19,079(0)23,140(0)Total shareholders' equity

21,37625,506

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

00

Foreign currency translation adjustment(2,149)(3,107)

Total accumulated other comprehensive income(2,149)(3,107)

Share acquisition rights
Total net assets
Total liabilities and net assets

4171

259

19,39822,65850,99649,444

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net sales

35,14035,960

Cost of sales

4,048

3,957

Gross profit

31,091

32,003

Selling, general and administrative expenses

26,156

26,533Operating profit

4,935

5,470

Non-operating income
Interest income

2410

Share of profit of entities accounted for using equity method
Other

1,486
62

1,241
88

Total non-operating income

1,573

1,340

4353

Interest expenses
Other102690
13

Total non-operating expenses

152

157

6,355

6,653

Gain on sale of non-current assets
Gain on sale of investment securities

1–070

Gain on sale of businesses

55–

Total extraordinary income

5770

Loss on sale and retirement of non-current assets
Loss on valuation of investment securities

23–1173

Loss on termination of retirement benefit plan
Event cancellation loss–
13121
11

Non-operating expenses
Foreign exchange losses

Ordinary profit
Extraordinary income

Extraordinary losses

37253

Profit before income taxes

Total extraordinary losses

6,375

6,470

Income taxes - current
Income taxes - deferred

1,702
(87)

1,734
(65)

Total income taxes

1,615

1,669

Profit4,760

4,800–

–

4,760

4,800

Profit attributable to non-controlling interests
Profit attributable to owners of parent5

Consolidated statements of comprehensive income(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

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
4,760

4,800

(0)
(310)

0(952)

(4)

(5)

(315)

(957)

4,444

3,843

4,444

3,843––

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

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Total shareholders'equity

Treasury shares

2,208

13

14,971(0)17,193Issuance of new shares

37

37

–

–

75

Dividends of surplus––(652)–(652)

Profit attributable to ownersof parent

–

–

4,760

–

4,760

Purchase of treasury shares–––(0)(0)

Net changes in items otherthan shareholders' equity

––––

–

Changes during period

Total changes during period
Balance at end of period

3737

4,107(0)

4,183

2,246

51

19,079(0)

21,376

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment0(1,834)(1,833)179

Issuance of new shares

––––

75

Dividends of surplus––––(652)

Profit attributable to ownersof parent

–

–––

4,760

Purchase of treasury shares––––(0)Net changes in items otherthan shareholders' equity

(0)

(315)

(315)

(7)

(323)

Total changes during period(0)

(315)

(315)

(7)

3,859

Balance at end of period0(2,149)(2,149)171

19,398

Balance at beginning of period

Total accumulated
Share acquisition
otherrights
comprehensive
incomeTotal net assets

15,539Changes during period7

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Total shareholders'equity

Treasury shares

2,246

51

19,079(0)

21,376

Issuance of new shares

34

34

––

68

Dividends of surplus––(739)–(739)

Profit attributable to ownersof parent–

–

4,800

–

4,800

Purchase of treasury shares

––

–

(0)

(0)

Net changes in items otherthan shareholders' equity

––

––

–

Total changes during period

34

34

4,060

(0)

4,129

2,281

85

23,140(0)25,506

Changes during period

Balance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment0(2,149)(2,149)171

Issuance of new shares

––––

68

Dividends of surplus

––––

(739)

Profit attributable to ownersof parent––––

4,800

Purchase of treasury shares

––––

(0)

Net changes in items otherthan shareholders' equity

0(957)(957)

88(869)Balance at beginning of period

Total accumulated
Share acquisition
otherrights
comprehensive
incomeTotal net assets

19,398Changes during period

Total changes during period0(957)

(957)

88

3,259

Balance at end of period0(3,107)(3,107)259

22,6588Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxesFiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
6,375

6,470

1,211809

1,371
814

Loss (gain) on sale and retirement of non-current assets
Loss (gain) on sale of investment securities

21–117(70)

Loss (gain) on valuation of investment securities
Share-based payment expenses

–(10)

381

Loss (gain) on sale of businesses
Share of loss (profit) of entities accounted for using equity(55)–(179)

240

Depreciation
Amortization of goodwill

methodIncrease (decrease) in allowance for doubtful accounts

(0)

79

Increase (decrease) in provision for bonuses
IncreaseDecreaseInProvisionForRepaymentOpeCF

1211482(9)Increase (decrease) in retirement benefit liability
Foreign exchange losses (gains)

4343

(198)
53

102
(910)

90
208

101
(1,626)

(30)
(142)

(30)
176

(148)
180

Increase (decrease) in accounts payable - other
Other, net

1,647
(308)

4464

Subtotal

7,547

9,303

Interest and dividends received
Interest paid27(102)20(90)

Income taxes paid

(1,880)(2,463)

Net cash provided by (used in) operating activities

5,591

6,769

Payments into time deposits
Proceeds from withdrawal of time deposits

(729)
916

(218)
399

Purchase of property, plant and equipment
Purchase of intangible assets(419)(1,186)(376)(1,659)Proceeds from sale of investment securities
Payments for acquisition of businesses

–
(5)

71
–

Proceeds from sale of businesses
Purchase of shares of subsidiaries resulting in change in57

–

(762)

–

Interest expenses
Decrease (increase) in trade receivables
Increase (decrease) in accrued consumption taxes
Decrease (increase) in accounts receivable - other
Decrease (increase) in prepaid expenses
Increase (decrease) in advances received

Cash flows from investing activities

scope of consolidation
Other, net
Net cash provided by (used in) investing activities

910(2,127)(1,783)

(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Cash flows from financing activities
Repayments of long-term borrowings
Repayments of lease obligations
Proceeds from issuance of share acquisition rights
Proceeds from issuance of shares resulting from exerciseof share acquisition rights
Dividends paid
Other, net(2,488)(78)(4,507)
(60)

81270

64(644)

(732)

(0)

(0)

Net cash provided by (used in) financing activities(3,132)(5,224)

Effect of exchange rate change on cash and cash equivalents

270

(110)

Net increase (decrease) in cash and cash equivalents

602

(348)

Cash and cash equivalents at beginning of period

9,890

10,493

Cash and cash equivalents at end of period

10,493

10,14410