SMS : FY03-23 Q1 SMS Summary of Consolidated Financial Results

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, 2022
		(Based on Japanese GAAP)
					July 29, 2022
Company name:	SMS CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	2175	URL https://www.bm-sms.co.jp/
Representative:	CEO		Natsuki Goto
Inquiries:	CFO		Masato Sugizaki	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(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, 2022 (from April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit	Profit attributable to
					owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%
Three months ended June 30, 2022	12,517		15.5		3,086	21.2		4,046		21.9		2,975		20.1
Three months ended June 30, 2021	10,838		2.8		2,547	14.2		3,319		10.0		2,476		12.5
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended June 30, 2022			34.14					33.99
Three months ended June 30, 2021			28.43					28.29
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen				%
As of June 30, 2022		60,789					33,440				54.4
As of March 31, 2022		56,585					29,991				52.4
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended March 31, 2022		-			0.00			-			10.50			10.50
Year ending March 31, 2023		-
Year ending March 31, 2023 (Forecast)					0.00			-				-			-

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	46,063	18.4	7,238	14.6	8,499	10.0	5,984	10.6	68.67

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

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:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
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, 2022	87,147,800	shares	As of March 31, 2022	87,147,800	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	561	shares	As of March 31, 2022	561	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	87,147,239	shares	Three months ended June 30, 2021	87,123,085	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	14,640	17,607
Accounts receivable - trade	5,842	5,186
Work in process	28	26
Supplies	25	29
Accounts receivable - other	6,757	7,732
Prepaid expenses	665	875
Other	27	38
Allowance for doubtful accounts	(163)	(171)
Total current assets	27,823	31,323
Non-current assets
Property, plant and equipment
Buildings	746	786
Accumulated depreciation	(396)	(421)
Buildings, net	350	365
Tools, furniture and fixtures	864	917
Accumulated depreciation	(642)	(691)
Tools, furniture and fixtures, net	222	225
Machinery, equipment and vehicles	28	30
Accumulated depreciation	(18)	(20)
Machinery, equipment and vehicles, net	9	9
Right-of-use assets	688	734
Accumulated depreciation	(394)	(455)
Right-of-use assets,net	294	278
Total property, plant and equipment	876	879
Intangible assets
Goodwill	8,907	9,243
Software	3,013	3,265
Trademark right	9,581	10,195
Customer-related assets	1,421	1,447
Other	0	0
Total intangible assets	22,923	24,151
Investments and other assets
Investment securities	2,825	2,247
Deferred tax assets	975	993
Leasehold and guarantee deposits	1,160	1,193
Total investments and other assets	4,962	4,434
Total non-current assets	28,762	29,465
Total assets		56,585	60,789

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			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Accounts payable - trade	307	232
Current portion of long-term borrowings	1,999	1,953
Accounts payable - other	8,933	9,986
Accrued expenses	577	797
Income taxes payable	1,674	911
Accrued consumption taxes	460	776
Contract liabilities	1,004	1,196
Deposits received	169	229
Provision for bonuses	704	350
Lease liabilities	131	116
Other	244	283
Total current liabilities	16,207	16,834
Non-current liabilities
Long-term borrowings	8,054	8,054
Retirement benefit liability	173	189
Deferred tax liabilities	1,973	2,084
Lease liabilities	185	185
Other	0	0
Total non-current liabilities	10,387	10,514
Total liabilities	26,594	27,348
Net assets
Shareholders' equity
Share capital	2,310	2,310
Capital surplus	114	114
Retained earnings	27,699	29,759
Treasury shares	(1)	(1)
Total shareholders' equity	30,123	32,183
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	567	590
Foreign currency translation adjustment	(1,052)	290
Total accumulated other comprehensive income	(484)	881
Share acquisition rights	352	376
Total net assets	29,991	33,440
Total liabilities and net assets		56,585	60,789

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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, 2021	June 30, 2022
Net sales	10,838	12,517
Cost of sales	949	1,157
Gross profit	9,889	11,360
Selling, general and administrative expenses	7,341	8,273
Operating profit	2,547	3,086
Non-operating income
Share of profit of entities accounted for using equity method	806	954
Foreign exchange gains	-	11
Other	11	14
Total non-operating income	817	980
Non-operating expenses
Interest expenses	21	18
Foreign exchange losses	20	-
Other	3	2
Total non-operating expenses	45	20
Ordinary profit	3,319	4,046
Extraordinary income
Gain on sale of non-current assets	0	0
Total extraordinary income	0	0
Extraordinary losses
Loss on sale and retirement of non-current assets	6	4
Loss on sale of investment securities	-	1
Loss of reversal of foreign currency translation adjustment	-	33
Total extraordinary losses	6	39
Profit before income taxes	3,313	4,007
Income taxes	836	1,032
Profit	2,476	2,975
Profit attributable to owners of parent		2,476	2,975

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