エス・エム・エス（2175） – Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2021 (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 Nine Months Ended December 31, 2021 (Based on Japanese GAAP) January 31, 2022Company name: Stock exchange listing: Tokyo SMS CO., LTD. Stock code: Representative: 2175 CEO Inquiries: Scheduled date to file Quarterly Securities Report: CFO URL https://www.bm-sms.co.jp/ Scheduled date to commence dividend payments: Preparation of supplementary material on quarterly financial results: Yes – Natsuki Goto Masato Sugizaki February 10, 2022 TEL 03-6721-2400 Holding of quarterly financial results meeting: 1. Consolidated financial results for the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021) (for institutional investors and analysts) Yes (Amounts less than one million yen are rounded down)(1) Consolidated operating results (cumulative) Net sales Operating profit Percentages indicate year-on-year changesProfit attributable to owners of parent Ordinary profit Nine months ended December 31, 2021 Nine months ended December 31, 2020 Millions of yen 28,315 26,366 % Millions of yen 3,895 7.4 3,220 4.2 % Millions of yen 5,119 4,245 21.0 54.2 % Millions of yen 3,649 2,868 20.6 24.5 % 27.2 14.0 Nine months ended December 31, 2021 Nine months ended December 31, 2020 (2) Consolidated financial position As of December 31, 2021 As of March 31, 2021 2. Cash dividends Earnings per share Diluted earnings per share Yen 41.88 32.94 Yen 41.68 32.79 Total assets Net assets Equity ratio Millions of yen 54,981 49,444 Millions of yen 27,545 22,658 % 49.5 45.3 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Annual dividends per share Year ended March 31, 2021 Year ending March 31, 2022 Year ending March 31, 2022 (Forecast) Yen – – Yen 0.00 0.00 Yen – – Yen 9.50 – Yen 9.50 – 3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Earnings per share Full year Millions of yen 40,043 % Millions of yen 6,205 11.4 % Millions of yen 7,352 13.4 % Millions of yen 5,281 10.5 % 10.0 Yen 60.62 14. Notes (1) Changes in significant subsidiaries during the nine months ended December 31, 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: 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: Changes in accounting policies due to other reasons: Changes in accounting estimates: Restatement of prior period financial statements: (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) No Yes No No No As of December 31, 2021 87,130,600 shares As of March 31, 2021 87,109,600 shares Number of treasury shares at the end of the period As of December 31, 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) Nine months ended December 31, 2021 87,126,584 shares Nine months ended December 31, 2020 87,077,811 shares 2Quarterly consolidated financial statements Consolidated balance sheets As of March 31, 2021 As of December 31, 2021 (Millions of yen) 10,538 4,933 16 31 6,324 598 808 156 (188) 23,218 619 (324) 295 792 (552) 239 36 (20) 16 618 (230) 387 939 8,834 2,355 8,621 1,502 0 21,313 1,975 879 1,110 7 3,972 26,225 49,444 14,540 4,338 18 25 7,325 – 801 79 (153) 26,975 726 (379) 347 846 (608) 237 26 (16) 9 669 (348) 320 914 8,872 2,843 9,322 1,443 0 22,483 2,551 957 1,099 – 4,608 28,006 54,981 Assets Current assets Cash and deposits Accounts receivable – trade Work in process Supplies Accounts receivable – other Income taxes receivable Prepaid expenses Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings Accumulated depreciation Buildings, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Right-of-use assets Accumulated depreciation Right-of-use assets,net Total property, plant and equipment Intangible assets Goodwill Software Trademark right Customer-related assets Other Total intangible assets Investments and other assets Investment securities Deferred tax assets Leasehold and guarantee deposits Other Total investments and other assets Total non-current assets Total assets 3 As of March 31, 2021 As of December 31, 2021 (Millions of yen) 258 2,479 7,750 438 374 505 869 – 147 669 233 115 33 13,875 10,644 149 1,830 281 3 12,909 26,785 2,281 85 23,140 (0) 25,506 0 (3,107) (3,107) 259 22,658 49,444 211 2,043 9,515 974 925 355 – 1,155 123 463 – 94 230 9,004 160 1,935 243 0 16,092 11,344 27,436 2,298 102 25,939 (1) 28,339 493 (1,618) (1,124) 330 27,545 54,981 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 obligations Other Total current liabilities Non-current liabilities Long-term borrowings Retirement benefit liability Deferred tax liabilities Lease obligations Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Total net assets Total liabilities and net assets 4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) Consolidated statements of income (cumulative) Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Share of profit of entities accounted for using equity method Other Total non-operating income Non-operating expenses Foreign exchange losses Interest expenses Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Total extraordinary income Extraordinary losses Loss on sale and retirement of non-current assets Loss on valuation of investment securities Loss on termination of retirement benefit plan Event cancellation loss Total extraordinary losses Profit before income taxes Income taxes Profit Profit attributable to owners of parent 26,366 2,801 23,564 20,344 3,220 1,095 68 1,163 56 70 11 138 4,245 0 0 71 3 121 11 207 4,038 1,169 2,868 2,868 28,315 3,184 25,130 21,235 3,895 1,312 36 1,348 124 5,119 51 62 10 1 1 15 – – – 15 5,105 1,456 3,649 3,649 5Consolidated statements of comprehensive income (cumulative) (Millions of yen) Nine months ended December 31, 2020 Nine months ended December 31, 2021 Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 2,868 (0) (642) (4) (646) 2,221 2,221 – 3,649 0 1,472 510 1,982 5,631 5,631 – 6