SMS : Summary of Consolidated Financial Results for the Year Ended March 31, 2022 (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 Year Ended March 31, 2022

(Based on Japanese GAAP)

Company name: SMS CO., LTD.

Stock exchange listing: Tokyo

Stock code:	2175	URLhttps://www.bm-sms.co.jp/
Representative:	CEO	Natsuki Goto
Inquiries:	CFO	Masato Sugizaki

TEL [phone]

April 28, 2022

Scheduled date of ordinary general meeting of shareholders:	June 24, 2022
Scheduled date to file Securities Report:	June 24, 2022
Scheduled date to commence dividend payments:	June 27, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:	Yes (for institutional investors and analysts)
(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Consolidated operating results

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Year ended March 31, 2022 Year ended March 31, 2021	Millions of yen 38,899 35,960	% 8.2 2.3	Millions of yen 6,318 5,470	% 15.5 10.8	Millions of yen 7,726 6,653	% 16.1 4.7	Millions of yen 5,408 4,800	% 12.7 0.9

Earnings per share	Diluted earnings per share	Profit attributable to owners of parent/equity	Ordinary profit/total assets	Operating profit/net sales
Year ended March 31, 2022 Year ended March 31, 2021	Yen 62.07 55.13	Yen 61.77 54.86	% 20.8 23.1	% 14.6 13.2	% 16.2 15.2

(2) Consolidated financial position

Total assets	Net assets	Equity ratio	Net assets per share
As of March 31, 2022 As of March 31, 2021	Millions of yen 56,585 49,444	Millions of yen 29,991 22,658	% 52.4 45.3	Yen 340.10 257.14

(3) Consolidated cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
Year ended March 31, 2022 Year ended March 31, 2021	Millions of yen 9,818 6,769	Millions of yen (2,079) (1,783)	Millions of yen (3,987) (5,224)	Millions of yen 14,126 10,144

2. Cash dividends

Annual dividends per share	Total cash dividends (Total)	Dividend payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended March 31, 2021 Year ended March 31, 2022	Yen - -	Yen 0.00 0.00	Yen - -	Yen 9.50 10.50	Yen 9.50 10.50	Millions of yen 827 915	% 17.2 16.9	% 4.0 3.5
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 owners of parent	Earnings per share
Full year	Millions of yen 46,063	% 18.4	Millions of yen 7,238	% 14.6	Millions of yen 8,499	% 10.0	Millions of yen 5,984	% 10.6	Yen 68.68

4. Notes

• (1) Changes in significant subsidiaries during the year ended March 31, 2022

  No

  (changes in specified subsidiaries resulting in the change in scope of consolidation):

• (2) 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
(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2022 87,147,800 shares

As of March 31, 2021 87,109,600 shares

As of March 31, 2022

87,147,800 shares As of March 31, 2021

87

Number of treasury shares at the end of the period

As of March 31, 2022 561 shares

As of March 31, 2021 491 shares

561 shares As of March 31, 2021

As of March 31, 2022

491 share

Average number of shares during the period

Year ended March 31, 2022 87,131,740 shares

Year ended March 31, 2021 87,085,303 shares

Year ended March 31, 2022 87,131,740 shares Year ended March 3

Consolidated financial statements Consolidated balance sheets

(Millions of yen)
As of March 31, 2021	As of March 31, 2022
Assets Current assets Cash and deposits Accounts receivable - trade Work in process Supplies Accounts receivable - other Income taxes refund receivable Prepaid expenses Other Allowance for doubtful accounts	10,538 4,933 16 31 6,324 598 808 156 (188)	14,640 5,842 28 25 6,757 - 665 27 (163)
Total current assets	23,218	27,823
Non-current assets Property, plant and equipment Buildings Accumulated depreciation	619 (324)	746 (396)
Buildings, net	295	350
Tools, furniture and fixtures Accumulated depreciation	792 (552)	864 (642)
Tools, furniture and fixtures, net	239	222
Machinery, equipment and vehicles Accumulated depreciation	36 (20)	28 (18)
Machinery, equipment and vehicles, net	16	9
Right-of-use assets Accumulated depreciation	618 (230)	688 (394)
Right-of-use assets,net	387	294
Total property, plant and equipment	939	876
Intangible assets Goodwill Software Trademark right Customer-related assets Other	8,834 2,355 8,621 1,502 0	8,907 3,013 9,581 1,421 0
Total intangible assets	21,313	22,923
Investments and other assets Investment securities Deferred tax assets Leasehold and guarantee deposits Other	1,975 879 1,110 7	2,825 975 1,160 -
Total investments and other assets	3,972	4,962
Total non-current assets	26,225	28,762
Total assets	49,444	56,585

(163)

(396)

(642)

(18)

(394)

(Millions of yen)
As of March 31, 2021	As of March 31, 2022
Liabilities Current liabilities Accounts payable - trade Current portion of long-term borrowings Accounts payable - other Accrued expenses Income taxes payable Accrued consumption taxes Advances received Contract liabilities Deposits received Provision for bonuses ProvisionForRepayment Lease liabilities Other	258 2,479 7,750 438 374 505 869 - 147 669 233 115 33	307 1,999 8,933 577 1,674 460 - 1,004 169 704 - 131 244
Total current liabilities	13,875	16,207
Non-current liabilities Long-term borrowings Retirement benefit liability Deferred tax liabilities Lease liabilities Other	10,644 149 1,830 281 3	8,054 173 1,973 185 0
Total non-current liabilities	12,909	10,387
Total liabilities	26,785	26,594
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	2,281 85 23,140 (0)	2,310 114 27,699 (1)
Total shareholders' equity	25,506	30,123
Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment	0 (3,107)	567 (1,052)
Total accumulated other comprehensive income	(3,107)	(484)
Share acquisition rights	259	352
Total net assets	22,658	29,991
Total liabilities and net assets	49,444	56,585

(1)

(1,052)

(484)

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

(Millions of yen)
Fiscal year ended March 31, 2021	Fiscal year ended March 31, 2022
Net sales Cost of sales	35,960 3,957	38,899 4,455
Gross profit	32,003	34,443
Selling, general and administrative expenses	26,533	28,125
Operating profit	5,470	6,318
Non-operating income Interest income Share of profit of entities accounted for using equity method Other	10 1,241 88	12 1,509 47
Total non-operating income	1,340	1,569
Non-operating expenses Foreign exchange losses Interest expenses Other	53 90 13	43 79 38
Total non-operating expenses	157	160
Ordinary profit	6,653	7,726
Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities	0 70	1 -
Total extraordinary income	70	1
Extraordinary losses Loss on sale and retirement of non-current assets Impairment losses Loss on valuation of investment securities Loss on termination of retirement benefit plan Event cancellation loss	117 - 3 121 11	15 3 1 - -
Total extraordinary losses	253	21
Profit before income taxes	6,470	7,707
Income taxes - current Income taxes - deferred	1,734 (65)	2,444 (145)
Total income taxes	1,669	2,298
Profit	4,800	5,408
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent	4,800	5,408

(145)