SMS : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2021 (Based on Japanese GAAP)

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:	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 6, 2021
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, 2021 (from April 1, 2021 to June 30, 2021)

(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, 2021	10,838		2.8		2,547	14.2		3,319		10.0			2,476		12.5
Three months ended June 30, 2020	10,539		12.4		2,230	55.6		3,018		30.0			2,201		22.3
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended June 30, 2021			28.43					28.29
Three months ended June 30, 2020			25.28					25.18
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen				%
As of June 30, 2021		53,411					25,663				47.5
As of March 31, 2021		49,444					22,658				45.3
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, 2021		-			0.00			-				9.50			9.50
Year ending March 31, 2022		-
Year ending March 31, 2022 (Forecast)					0.00			-					-			-

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

	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	40,043	11.4	6,205	13.4	7,352	10.5	5,281	10.0	60.62

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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):
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:	Yes
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, 2021	87,123,600	shares	As of March 31, 2021	87,109,600	shares
Number of treasury shares at the end of the period
	As 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	87,057,488	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of June 30, 2021
Assets
Current assets
Cash and deposits	10,538	13,448
Accounts receivable - trade	4,933	4,515
Work in process	16	29
Supplies	31	42
Accounts receivable - other	6,324	6,915
Income taxes receivable	598	598
Prepaid expenses	808	862
Other	156	73
Allowance for doubtful accounts	(188)	(191)
Total current assets	23,218	26,295
Non-current assets
Property, plant and equipment
Buildings	619	698
Accumulated depreciation	(324)	(351)
Buildings, net	295	347
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
Total property, plant and equipment	939	1,019
Intangible assets
Goodwill	8,834	9,205
Software	2,355	2,520
Trademark right	8,621	9,222
Customer-related assets	1,502	1,547
Other	0	0
Total intangible assets	21,313	22,495
Investments and other assets
Investment securities	1,975	1,545
Deferred tax assets	879	928
Leasehold and guarantee deposits	1,110	1,127
Other	7	-
Total investments and other assets	3,972	3,602
Total non-current assets	26,225	27,116
Total assets		49,444	53,411

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			(Millions of yen)
		As of March 31, 2021	As of June 30, 2021
Liabilities
Current liabilities
Accounts payable - trade	258	211
Current portion of long-term borrowings	2,479	2,094
Accounts payable - other	7,750	8,807
Accrued expenses	438	683
Income taxes payable	374	797
Accrued consumption taxes	505	692
Advances received	869	-
Contract liabilities	-	1,127
Deposits received	147	206
Provision for bonuses	669	308
ProvisionForRepayment	233	-
Lease obligations	115	113
Other	33	309
Total current liabilities	13,875	15,353
Non-current liabilities
Long-term borrowings	10,644	10,003
Retirement benefit liability	149	163
Deferred tax liabilities	1,830	1,943
Lease obligations	281	282
Other	3	2
Total non-current liabilities	12,909	12,395
Total liabilities	26,785	27,748
Net assets
Shareholders' equity
Share capital	2,281	2,289
Capital surplus	85	94
Retained earnings	23,140	24,767
Treasury shares	(0)	(0)
Total shareholders' equity	25,506	27,150
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	0	0
Foreign currency translation adjustment	(3,107)	(1,767)
Total accumulated other comprehensive income	(3,107)	(1,767)
Share acquisition rights	259	280
Total net assets	22,658	25,663
Total liabilities and net assets		49,444	53,411

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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, 2020	June 30, 2021
Net sales	10,539	10,838
Cost of sales	932	949
Gross profit	9,607	9,889
Selling, general and administrative expenses	7,376	7,341
Operating profit	2,230	2,547
Non-operating income
Share of profit of entities accounted for using equity method	797	806
Other	23	11
Total non-operating income	820	817
Non-operating expenses
Interest expenses	24	21
Foreign exchange losses	7	20
Other	0	3
Total non-operating expenses	32	45
Ordinary profit	3,018	3,319
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	44	6
Event cancellation loss	6	-
Total extraordinary losses	51	6
Profit before income taxes	2,966	3,313
Income taxes	765	836
Profit	2,201	2,476
Profit attributable to owners of parent		2,201	2,476

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