SMS : FY03-22 SMS Financial Statements

Financial Statements

Year ended March 31, 2022

SMS CO., LTD.

Sumitomo Fudosan Shibakoen Tower,

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

Tokyo, 105-0011, Japan

－ 1 －

Consolidated Balance Sheets

SMS CO., LTD. and its Consolidated Subsidiaries

As of March 31, 2021 and 2022

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

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

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, 2021 and 2022

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

See the accompanying Notes to Consolidated Financial Statements.

－ 4 －

Consolidated Statements of Comprehensive Income

SMS CO., LTD. and Its Consolidated Subsidiaries

Fiscal years ended March 31, 2021 and 2022

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2021	March 31, 2022
Profit	4,800	5,408
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

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to:

0	(0)
(952)	2,031
(5)	590
* (957)	* 2,622
3,843	8,031

Owners of parent	3,843	8,031
Non-controlling interests	-	-
See the accompanying Notes to Consolidated Financial Statements.

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