SMS : FY03-22 1H 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 Six Months Ended September 30, 2021
		(Based on Japanese GAAP)
					October 29, 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:	November 12, 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 six months ended September 30, 2021 (from April 1, 2021 to September 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		%
Six months ended September 30, 2021	19,927		6.9		3,682	24.8		4,700		22.0			3,404		22.7
Six months ended September 30, 2020	18,638		5.7		2,949	42.2		3,852		23.5			2,775		19.6
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended September 30, 2021			39.07					38.89
Six months ended September 30, 2020			31.88					31.74
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen				%
As of September 30, 2021		54,114					26,676				48.7
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		-			0.00
Year ending March 31, 2022 (Forecast)									-					-			-

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 six months ended September 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 September 30, 2021	87,129,100	shares	As of March 31, 2021	87,109,600	shares
Number of treasury shares at the end of the period
	As of September 30, 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)
	Six months ended September 30, 2021	87,125,207	shares	Six months ended September 30, 2020	87,065,555	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	10,538	13,864
Accounts receivable - trade	4,933	5,070
Work in process	16	32
Supplies	31	38
Accounts receivable - other	6,324	7,131
Income taxes receivable	598	-
Prepaid expenses	808	773
Other	156	71
Allowance for doubtful accounts	(188)	(170)
Total current assets	23,218	26,813
Non-current assets
Property, plant and equipment
Buildings	619	707
Accumulated depreciation	(324)	(365)
Buildings, net	295	342
Tools, furniture and fixtures	792	841
Accumulated depreciation	(552)	(589)
Tools, furniture and fixtures, net	239	252
Machinery, equipment and vehicles	36	27
Accumulated depreciation	(20)	(17)
Machinery, equipment and vehicles, net	16	9
Right-of-use assets	618	669
Accumulated depreciation	(230)	(319)
Right-of-use assets,net	387	349
Total property, plant and equipment	939	954
Intangible assets
Goodwill	8,834	8,983
Software	2,355	2,746
Trademark right	8,621	9,211
Customer-related assets	1,502	1,485
Other	0	0
Total intangible assets	21,313	22,427
Investments and other assets
Investment securities	1,975	1,852
Deferred tax assets	879	950
Leasehold and guarantee deposits	1,110	1,116
Other	7	-
Total investments and other assets	3,972	3,919
Total non-current assets	26,225	27,300
Total assets		49,444	54,114

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			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Accounts payable - trade	258	213
Current portion of long-term borrowings	2,479	2,092
Accounts payable - other	7,750	9,116
Accrued expenses	438	587
Income taxes payable	374	1,286
Accrued consumption taxes	505	527
Advances received	869	-
Contract liabilities	-	1,130
Deposits received	147	131
Provision for bonuses	669	582
Provision for repayment	233	-
Lease obligations	115	106
Other	33	309
Total current liabilities	13,875	16,084
Non-current liabilities
Long-term borrowings	10,644	9,004
Retirement benefit liability	149	159
Deferred tax liabilities	1,830	1,926
Lease obligations	281	261
Other	3	0
Total non-current liabilities	12,909	11,353
Total liabilities	26,785	27,437
Net assets
Shareholders' equity
Share capital	2,281	2,296
Capital surplus	85	101
Retained earnings	23,140	25,695
Treasury shares	(0)	(1)
Total shareholders' equity	25,506	28,092
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	0	0
Foreign currency translation adjustment	(3,107)	(1,723)
Total accumulated other comprehensive income	(3,107)	(1,723)
Share acquisition rights	259	307
Total net assets	22,658	26,676
Total liabilities and net assets		49,444	54,114

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2020	September 30, 2021
Net sales	18,638	19,927
Cost of sales	1,831	2,046
Gross profit	16,806	17,881
Selling, general and administrative expenses	13,857	14,198
Operating profit	2,949	3,682
Non-operating income
Share of profit of entities accounted for using equity method	942	1,113
Other	34	17
Total non-operating income	976	1,130
Non-operating expenses
Foreign exchange losses	24	59
Interest expenses	47	42
Other	1	10
Total non-operating expenses	74	112
Ordinary profit	3,852	4,700
Extraordinary income
Gain on sale of non-current assets	0	1
Total extraordinary income	0	1
Extraordinary losses
Loss on sale and retirement of non-current assets	52	14
Loss on valuation of investment securities	3	-
Event cancellation loss	10	-
Total extraordinary losses	66	14
Profit before income taxes	3,786	4,687
Income taxes	1,010	1,283
Profit	2,775	3,404
Profit attributable to owners of parent		2,775	3,404

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