SMS : FY03-24 SMS Financial Statements

(Millions of yen)

As of March 31, 2023

As of March 31, 2024

Assets

Current assets

Cash and deposits

16,965

18,236

Accounts receivable - trade

6,510

8,228

Work in process

20

13

Supplies

29

25

Accounts receivable - other

8,440

10,406

Prepaid expenses

793

1,038

Other

67

94

Allowance for doubtful accounts

(274)

(267)

Total current assets

32,552

37,775

Non-current assets

Property, plant and equipment

Buildings

845

1,131

Accumulated depreciation

(448)

(509)

Buildings, net

397

621

Tools, furniture and fixtures

1,024

1,097

Accumulated depreciation

(802)

(877)

Tools, furniture and fixtures, net

222

220

Machinery, equipment and vehicles

30

20

Accumulated depreciation

(23)

(15)

Machinery, equipment and vehicles, net

7

4

Right-of-use assets

768

657

Accumulated depreciation

(509)

(371)

Right-of-use assets, net

259

285

Total property, plant and equipment

886

1,132

Intangible assets

Goodwill

10,029

9,752

Software

4,156

5,454

Trademark rights

11,053

11,814

Customer-related assets

1,355

1,143

Other

0

0

Total intangible assets

26,594

28,165

Investments and other assets

Investment securities

* 2,629

* 2,652

Deferred tax assets

1,138

1,262

Lease and guarantee deposits

1,298

1,486

Total investments and other assets

5,065

5,402

Total non-current assets

32,546

34,699

Total assets

65,098

72,475

(Millions of yen)

As of March 31, 2023

As of March 31, 2024

Liabilities

Current liabilities

Accounts payable - trade

324

460

Current portion of long-term loans payable

1,901

1,901

Accounts payable - other

10,566

12,730

Accrued expenses

682

1,059

Income taxes payable

1,263

1,344

Accrued consumption taxes

654

930

Contract liabilities

1,073

1,205

Deposits received

180

183

Provision for bonuses

858

909

Lease obligations

152

160

Other

357

439

Total current liabilities

18,015

21,325

Non-current liabilities

Long-term loans payable

6,153

4,251

Net defined benefit liability

178

203

Deferred tax liabilities

2,208

2,286

Lease obligations

121

121

Other

-

2

Total non-current liabilities

8,661

6,865

Total liabilities

26,677

28,190

Net assets

Shareholders' equity

Capital stock

2,315

2,551

Capital surplus

119

313

Retained earnings

33,190

39,111

Treasury shares

(1)

(1,904)

Total shareholders' equity

35,624

40,071

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

395

322

Foreign currency translation adjustments

1,917

3,607

Total accumulated other comprehensive income

2,312

3,930

Subscription rights to shares

484

282

Total net assets

38,421

44,284

Total liabilities and net assets

65,098

72,475

(Millions of yen)

Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024

Net sales

*1

45,667

*1

53,973

Cost of sales

5,566

6,430

Gross profit

40,100

47,543

Selling, general and administrative expenses

*2

32,820

*2

39,273

Operating income

7,279

8,269

Non-operating income

Interest income

17

38

Share of profit of entities accounted for using equity method

1,526

1,683

Other

70

56

Total non-operating income

1,615

1,778

Non-operating expenses

Foreign exchange losses

59

66

Interest expenses

69

66

Other

6

13

Total non-operating expenses

135

146

Ordinary income

8,759

9,901

Extraordinary income

Gain on sale of non-current assets

0

2

Gain on reversal of foreign currency translation adjustment

50

-

Total extraordinary income

51

2

Extraordinary losses

Loss on sale and retirement of non-current assets

*3

13

*3

161

Loss on sale of investment securities

1

-

Loss on valuation of investment securities

0

-

Total extraordinary losses

15

161

Profit before income taxes

8,795

9,742

Income taxes - current

2,575

2,687

Income taxes - deferred

(186)

172

Total income taxes

2,389

2,514

Profit

( )

6,406

7,227

Profit attributable to non-controlling interests

-

-

Profit attributable to owners of parent

6,406

7,227

(Millions of yen)

Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024

Profit

6,406

7,227

Other comprehensive income

Owners of parent

9,203

8,845

Non-controlling interests

-

-

See the accompanying Notes to Consolidated Financial Statements.

(Millions of yen)

Shareholders' equity

Capital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholders'

equity

Balance at April 1, 2022

2,310

114

27,699

(1)

30,123

Changes of items during period

Issuance of new shares

4

4

－

－

9

Dividends of surplus

－

－

(915)

－

(915)

Profit attributable to owners

－

－

6,406

－

6,406

of parent

Purchase of treasury shares

－

－

－

(0)

(0)

Net changes of items other

－

－

－

－

－

than shareholders' equity

Total changes of items during

4

4

5,491

(0)

5,500

period

Balance at March 31, 2023

2,315

119

33,190

(1)

35,624

Accumulated other comprehensive income

Subscription rights to

Valuation difference on

Foreign currency

Total accumulated

Total net assets

shares

available-for-sale

other comprehensive

translation adjustments

securities

income

Balance at April 1, 2022

567

(1,052)

(484)

352

29,991

Changes of items during period

Issuance of new shares

－

－

－

－

9

Dividends of surplus

－

－

－

－

(915)

Profit attributable to owners

－

－

－

－

6,406

of parent

Purchase of treasury shares

－

－

－

－

(0)

Net changes of items other

(171)

2,969

2,797

131

2,929

than shareholders' equity

Total changes of items during

(171)

2,969

2,797

131

8,430

period

Balance at March 31, 2023

395

1,917

2,312

484

38,421

(Millions of yen)

Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024

Cash flows from operating activities

Profit before income taxes

8,795

9,742

Depreciation

1,977

2,410

Amortization of goodwill

919

1,046

Loss (gain) on sale and retirement of non-current assets

12

159

Loss (gain) on sale of investment securities

1

-

Loss (gain) on valuation of investment securities

0

-

Share-based remuneration expenses

126

(34)

Loss (gain) on reversal of foreign currency translation

(50)

-

adjustment

Share of (profit) loss of entities accounted for using equity

45

(87)

method

Increase (decrease) in allowance for doubtful accounts

93

(14)

Increase (decrease) in provision for bonuses

106

25

Increase (decrease) in net defined benefit liability

(18)

12

Foreign exchange losses (gains)

59

66

Interest expenses

69

66

Decrease (increase) in notes and accounts receivable - trade

(324)

(1,568)

Increase (decrease) in accrued consumption taxes

179

267

Decrease (increase) in accounts receivable - other

(1,649)

(1,947)

Decrease (increase) in prepaid expenses

(114)

(237)

Increase (decrease) in contract liabilities

(60)

72

Increase (decrease) in accounts payable - other

1,523

2,158

Other, net

(105)

304

Subtotal

11,586

12,441

Interest and dividend income received

22

39

Interest expenses paid

(70)

(68)

Income taxes paid

(3,034)

(2,639)

Net cash provided by (used in) operating activities

8,504

9,773

Cash flows from investing activities

Payments into time deposits

(459)

(217)

Proceeds from withdrawal of time deposits

227

188

Purchase of property, plant and equipment

(286)

(446)

Purchase of intangible assets

(2,628)

(3,266)

Proceeds from sale of investment securities

0

-

Purchase of shares of subsidiaries resulting in change in scope

(618)

-

of consolidation

Other, net

0

2

Net cash provided by (used in) investing activities

(3,763)

(3,739)

(Continued)

(Millions of yen)

Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024

Cash flows from financing activities

Repayments of long-term loans payable

(2,013)

(1,901)

Repayments of lease obligations

(128)

(171)

Proceeds from issuance of share acquisition rights

6

5

Proceeds from issuance of shares resulting from exercise

8

304

of share acquisition rights

Purchase of treasury shares

(0)

(2,000)

Proceeds from disposal of treasury shares

-

50

Cash dividends paid

(915)

(1,307)

Net cash provided by (used in) financing activities

(3,043)

(5,020)

Effect of exchange rate change on cash and cash equivalents

345

182

Net increase (decrease) in cash and cash equivalents

2,043

1,195

Cash and cash equivalents at beginning of the year

14,126

16,170

Cash and cash equivalents at end of the year

* 16,170

* 17,365

Major useful lives are as follows:

Buildings

6

to

15

years

Tools, furniture and fixtures

3

to

9

years

Machinery, equipment and vehicles

2

to

5

years

Software

Estimated period of internal use (within 5 years)

Trademark rights

Not

amortized

Customer-related assets

12

years