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, 2021
(Based on Japanese GAAP)
January 31, 2022
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 10, 2022

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, 2021 (from April 1, 2021 to December 31, 2021)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended December 31, 2021
Nine months ended December 31, 2020

Millions of yen
28,31526,366Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
7.4
3,895
21.0
5,119
20.6
3,649
27.2
4.2
3,220
54.2
4,245
24.5
2,868
14.0

Earnings per share

Diluted earnings per share

Yen
41.88
32.94

Nine months ended December 31, 2021
Nine months ended December 31, 2020

Yen
41.68
32.79

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

Net assets

Millions of yen
54,98149,444Equity ratio

Millions of yen
27,54522,658

%
49.5
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
0.00

Yen
––

Yen
9.50

Yen
9.50

–

–

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 nine months ended December 31, 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 December 31, 2021

87,130,600 shares As of March 31, 2021

87,109,600 shares

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

561 shares As of March 31, 2021

491 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2021

87,126,584 shares Nine months ended December 31, 2020

287,077,811 shares

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

As of December 31, 2021

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

10,538
4,933

14,540
4,338

1631

18256,324
598

7,325
–

Prepaid expenses
Other808
156

801
79

Allowance for doubtful accounts

(188)

(153)

23,21826,975619

726

Accumulated depreciation

(324)

(379)

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)

(608)

Tools, furniture and fixtures, net

239

237

Machinery, equipment and vehicles

3626

Accumulated depreciation

(20)

(16)

Machinery, equipment and vehicles, net

16

9

Right-of-use assets

618

669

Accumulated depreciation

(230)

(348)

Right-of-use assets,net

387

320

939

914

Total property, plant and equipment
Intangible assets
Goodwill

8,834

8,872

SoftwareTrademark right

2,355
8,621

2,843
9,322

Customer-related assets
Other

1,502
0

1,443
0

Total intangible assets

21,31322,483

Investments and other assets
Investment securities

1,975

2,551

879
1,110

957
1,099

7–

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

3

3,972

4,608

26,22528,00649,44454,981

(Millions of yen)
As of March 31, 2021

As of December 31, 2021

Liabilities
Current liabilities
Accounts payable - trade

258

211

2,479
7,750

2,043
9,515

Accrued expenses
Income taxes payable

438
374

974
925

Accrued consumption taxes
Advances received

505
869

355
–

Contract liabilities
Deposits received

–
147

1,155
123

Provision for bonuses
ProvisionForRepayment

669
233

463
–

Lease obligations
Other115
33

94
230

Total current liabilities

13,87516,092

Non-current liabilities
Long-term borrowings

10,644

9,004

149
1,830

160
1,935

281
3243
0

12,90911,344

26,78527,436

Shareholders' equity
Share capital

2,281

2,298

Capital surplus
Retained earnings

85
23,140102
25,939(0)(1)

25,50628,339Valuation difference on available-for-sale securities
Foreign currency translation adjustment

0(3,107)493(1,618)

Total accumulated other comprehensive income(3,107)(1,124)259

330

22,65827,54549,44454,981

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)
Nine months ended

Nine months ended

December 31, 2020

December 31, 2021

Net sales
Cost of sales

26,3662,801

28,315
3,184

Gross profit

23,56425,130

Selling, general and administrative expenses

20,344

21,235

Operating profit

3,220

3,895

Share of profit of entities accounted for using equity method
Other

1,095
68

1,312
36

Total non-operating income

1,163

1,348

5651

Interest expenses
Other

70
1162
10

Total non-operating expenses

138

124

4,245

5,119

Gain on sale of non-current assets

01

Total extraordinary income

01

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

71
315–

Loss on termination of retirement benefit plan
Event cancellation loss

121
11––

Total extraordinary losses

207

15

Profit before income taxes

4,038

5,105

Income taxes

1,169

1,456

Profit

2,868

3,649

Profit attributable to owners of parent

2,868

3,649

Non-operating income

Non-operating expenses
Foreign exchange losses

Ordinary profit
Extraordinary income

Extraordinary losses

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

ProfitOther comprehensive income
Valuation difference on available-for-sale securitiesForeign 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, 2020

December 31, 2021

2,868

3,649

(0)
(642)

0
1,472

(4)

510

(646)

1,982

2,221

5,631

2,221

5,631

––

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

6