SMS : FY03-20 SMS Financial Statements

Financial Statements

Year ended March 31, 2020

SMS CO., LTD.

Sumitomo Fudosan Shibakoen Tower,

2-11-1, Shibakoen, Minato-ku,

Tokyo, 105-0011, Japan

Consolidated Balance Sheets

SMS CO., LTD. and Its Consolidated Subsidiaries

As of March 31, 2019 and 2020

			(Millions of yen)
		As of March 31, 2019	As of March 31, 2020
Assets
Current assets
Cash and deposits	10,703	11,091
Accounts receivable - trade	4,323	5,213
Merchandise and finished goods	1	-
Work in process	13	14
Supplies	36	30
Accounts receivable - other	4,478	6,183
Prepaid expenses	634	664
Other	46	18
Allowance for doubtful accounts	(114)	(113)
Total current assets	20,123	23,102
Non-current assets
Property, plant and equipment
Buildings	459	626
Accumulated depreciation	(276)	(291)
Buildings, net	183	335
Tools, furniture and fixtures	749	806
Accumulated depreciation	(498)	(545)
Tools, furniture and fixtures, net	251	261
Machinery, equipment and vehicles	42	37
Accumulated depreciation	(30)	(17)
Machinery, equipment and vehicles, net	12	20
Right-of-use assets	-	481
Accumulated depreciation	-	(91)
Right-of-use assets, net	-	389
Total property, plant and equipment	447	1,006
Intangible assets
Goodwill	10,574	10,148
Software	1,174	1,637
Trademark rights	9,246	9,126
Customer-related assets	2,088	1,825
Other	0	0
Total intangible assets	23,083	22,738
Investments and other assets
Investment securities	* 2,048	* 2,225
Deferred tax assets	855	873
Lease and guarantee deposits	880	1,039
Other	30	11
Total investments and other assets	3,814	4,149
Total non-current assets	27,344	27,893
Total assets		47,467	50,996

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			(Millions of yen)
		As of March 31, 2019	As of March 31, 2020
Liabilities
Current liabilities
Accounts payable - trade	353	314
Current portion of long-term loans payable	2,487	2,487
Accounts payable - other	6,064	7,711
Accrued expenses	529	451
Income taxes payable	623	534
Accrued consumption taxes	435	536
Advances received	583	725
Deposits received	78	84
Provision for bonuses	481	600
Provision for refund	227	242
Lease obligations	-	112
Other	24	30
Total current liabilities	11,891	13,831
Non-current liabilities
Long-term loans payable	17,632	15,144
Net defined benefit liability	311	354
Deferred tax liabilities	2,078	1,994
Lease obligations	-	260
Other	13	11
Total non-current liabilities	20,037	17,766
Total liabilities	31,928	31,597
Net assets
Shareholders' equity
Capital stock	2,208	2,246
Capital surplus	13	51
Retained earnings	14,971	19,079
Treasury shares	(0)	(0)
Total shareholders' equity	17,193	21,376
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	0	0
Foreign currency translation adjustments	(1,834)	(2,149)
Total accumulated other comprehensive income	(1,833)	(2,149)
Subscription rights to shares	179	171
Total net assets	15,539	19,398
Total liabilities and net assets		47,467	50,996

See the accompanying Notes to Consolidated Financial Statements.

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Consolidated Statements of Income

SMS CO., LTD. and Its Consolidated Subsidiaries

Fiscal years ended March 31, 2019 and 2020

				(Millions of yen)
		Fiscal year ended	Fiscal year ended
		March 31, 2019	March 31, 2020
Net sales		30,836		35,140
Cost of sales		3,535		4,048
Gross profit		27,301		31,091
Selling, general and administrative expenses	*1	22,558	*1	26,156
Operating income		4,743		4,935
Non-operating income
Interest income		11		24
Share of profit of entities accounted for using equity method		1,352		1,486
Other		66		62
Total non-operating income		1,430		1,573
Non-operating expenses
Foreign exchange losses		51		43
Interest expenses		66		102
Arrangement fee		46		-
Other		30		6
Total non-operating expenses		194		152
Ordinary income		5,979		6,355
Extraordinary income
Gain on sale of non-current assets		1		1
Gain on sale of shares of subsidiaries and associates		6		-
Gain on sale of businesses	*2	-	*2	55
Total extraordinary income		8		57
Extraordinary losses
Loss on sale and retirement of non-current assets	*3	165	*3	23
Loss on valuation of investment securities		4		-
Loss on business withdrawal	*4	233	*4	-
Loss on cancellation of events	*5	-	*5	13
Other		49		-
Total extraordinary losses		453		37
Profit before income taxes		5,534		6,375
Income taxes - current		1,564		1,702
Income taxes - deferred		(221)		(87)
Total income taxes		1,342		1,615
Profit		4,191		4,760
Profit attributable to non-controlling interests		(25)		-
Profit attributable to owners of parent			4,216		4,760

See the accompanying Notes to Consolidated Financial Statements.

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Consolidated Statements of Comprehensive Income

SMS CO., LTD. and Its Consolidated Subsidiaries

Fiscal years ended March 31, 2019 and 2020

		(Millions of yen)
Fiscal year ended		Fiscal year ended
March 31, 2019		March 31, 2020
Profit	4,191	4,760
Other comprehensive income

Valuation difference on available-for-sale securities Foreign currency translation adjustments

Share of other comprehensive income of entities accounted for using equity method

0	(0)
(399)	(310)
(3)	(4)

Total other comprehensive income (loss) Comprehensive income Comprehensive income attributable to:

* (402)	* (315)
3,788	4,444

Owners of parent	3,806	4,444
Non-controlling interests	(17)	-

See the accompanying Notes to Consolidated Financial Statements.

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