SMS : FY03-24 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, 2023
		(Based on Japanese GAAP)
					July 28, 2023
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, 2023
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, 2023 (from April 1, 2023 to June 30, 2023)

(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, 2023	15,194	21.4	3,729	20.8	4,609	13.9	3,389	13.9
Three months ended June 30, 2022	12,517	15.5	3,086	21.2	4,046	21.9	2,975	20.1

	Earnings per share	Diluted earnings per share
		Yen				Yen
Three months ended June 30, 2023		38.89			38.70
Three months ended June 30, 2022		34.14			33.99
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen		%
As of June 30, 2023	68,991		40,662		58.2
As of March 31, 2023	65,098		38,421		58.3
2. Cash dividends
				Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end
	Yen			Yen			Yen	Yen
Year ended March 31, 2023	-			0.00			-	15.00
Year ending March 31, 2024	-
Year ending March 31, 2024 (Forecast)				0.00			-		-

Total

Yen 15.00

-

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

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	54,799	20.0	8,375	15.0	9,960	13.7	7,127	11.3	81.78

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2023 (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, 2023	87,159,600	shares	As of March 31, 2023	87,153,500	shares
Number of treasury shares at the end of the period
	As of June 30, 2023	681	shares	As of March 31, 2023	641	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2023	87,154,946	shares	Three months ended June 30, 2022	87,147,239	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	16,965	20,369
Accounts receivable - trade	6,510	6,138
Work in process	20	37
Supplies	29	38
Accounts receivable - other	8,440	9,383
Prepaid expenses	793	1,088
Other	67	49
Allowance for doubtful accounts	(274)	(269)
Total current assets	32,552	36,837
Non-current assets
Property, plant and equipment
Buildings	845	965
Accumulated depreciation	(448)	(463)
Buildings, net	397	501
Tools, furniture and fixtures	1,024	1,069
Accumulated depreciation	(802)	(829)
Tools, furniture and fixtures, net	222	240
Machinery, equipment and vehicles	30	31
Accumulated depreciation	(23)	(23)
Machinery, equipment and vehicles, net	7	7
Right-of-use assets	768	801
Accumulated depreciation	(509)	(549)
Right-of-use assets, net	259	252
Total property, plant and equipment	886	1,001
Intangible assets
Goodwill	10,029	9,859
Software	4,156	4,456
Trademark right	11,053	11,123
Customer-related assets	1,355	1,291
Other	0	0
Total intangible assets	26,594	26,730
Investments and other assets
Investment securities	2,629	1,897
Deferred tax assets	1,138	1,176
Leasehold and guarantee deposits	1,298	1,348
Total investments and other assets	5,065	4,422
Total non-current assets	32,546	32,154
Total assets	65,098	68,991

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		(Millions of yen)
	As of March 31, 2023	As of June 30, 2023
Liabilities
Current liabilities
Accounts payable - trade	324	270
Current portion of long-term borrowings	1,901	1,901
Accounts payable - other	10,566	12,004
Accrued expenses	682	955
Income taxes payable	1,263	1,117
Accrued consumption taxes	654	962
Contract liabilities	1,073	1,215
Deposits received	180	261
Provision for bonuses	858	432
Lease liabilities	152	150
Other	357	402
Total current liabilities	18,015	19,674
Non-current liabilities
Long-term borrowings	6,153	6,153
Retirement benefit liability	178	182
Deferred tax liabilities	2,208	2,204
Lease liabilities	121	113
Other	-	0
Total non-current liabilities	8,661	8,654
Total liabilities	26,677	28,328
Net assets
Shareholders' equity
Share capital	2,315	2,318
Capital surplus	119	123
Retained earnings	33,190	35,272
Treasury shares	(1)	(1)
Total shareholders' equity	35,624	37,713
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	395	373
Foreign currency translation adjustment	1,917	2,056
Total accumulated other comprehensive income	2,312	2,430
Share acquisition rights	484	518
Total net assets	38,421	40,662
Total liabilities and net assets	65,098	68,991

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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, 2022	June 30, 2023
Net sales	12,517	15,194
Cost of sales	1,157	1,392
Gross profit	11,360	13,802
Selling, general and administrative expenses	8,273	10,073
Operating profit	3,086	3,729
Non-operating income
Share of profit of entities accounted for using equity method	954	881
Foreign exchange gains	11	0
Other	14	14
Total non-operating income	980	897
Non-operating expenses
Interest expenses	18	16
Other	2	0
Total non-operating expenses	20	16
Ordinary profit	4,046	4,609
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	4	5
Loss on sale of investment securities	1	-
Loss of reversal of foreign currency translation adjustment	33	-
Total extraordinary losses	39	5
Profit before income taxes	4,007	4,604
Income taxes	1,032	1,214
Profit	2,975	3,389
Profit attributable to owners of parent	2,975	3,389

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