TOKYO, Apr 28 (Pulse News Wire) – SMS CO.,LTD. (2175.T) resolved to amend the exercise conditions for its performance-based stock options (the 20th and 21st tranches of subscription rights) during a board meeting held.
The changes come in light of impairment losses reported in overseas operations, which will reduce annual amortization expenses by approximately ¥1.500 billion starting fiscal year 2027. To ensure the intended difficulty level of the performance targets remains unchanged, the company adjusted the calculation method for real operating profit used as the exercise condition. Specifically, the revised formula now includes adjustments for depreciation savings resulting from the impairment loss recognized in March 2026.
For the 20th tranche of subscription rights, originally decided upon in a board resolution on July 08, 2024, and the 21st tranche, decided on July 07, 2025, the amended criteria require adding share-based compensation expense to the operating profit figure stated in the consolidated income statement for the respective fiscal year. Additionally, the adjustment subtracts the reduction in amortization costs due to the impairment loss recorded in March 2026. These modifications aim to maintain the initial intent behind issuing the stock options while ensuring alignment with shareholders’ interests and encouraging management commitment towards achieving operational growth objectives.
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