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 June 30, 2018
(Based on Japanese GAAP)
August 10, 2018
Company name:

Trust Tech Inc.

Stock exchange listing: Tokyo
Stock code:
2154
Representative:
Inquiries:

URL

http://www.trust-tech.jp/President and Representative Director
Director, Senior Managing Corporate

Yutaka Nishida
Noriyuki Murai

Executive Officer
Scheduled date of ordinary general meeting of shareholders:

September 21, 2018

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

September 25, 2018
September 4, 2018

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

TEL

03-5777-7727(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2018 (from July 1, 2017 to June 30, 2018)(1) Consolidated operating results
Net sales
Millions of yen
65,36343,035

Year ended June 30, 2018Year ended June 30, 2017
Note: Comprehensive income

Operating profit
%
51.9
42.8

Millions of yen
4,297
3,220%
33.4
26.3

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
4,228
32.7
2,569
33.5
3,185
26.0
1,923
26.3

Year ended June 30, 2018

¥2,711 million [33.7%]

Year ended June 30, 2017

¥2,027 million [33.3%]

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/netowners ofassets
sales
parent/equity
Yen%%%
127.95
25.5
18.8
6.6
98.92
32.3
22.2
7.5

Diluted earnings pershareYen
128.63
99.17

Year ended June 30, 2018Year ended June 30, 2017

Reference: Share of profit (loss) of investments accounted for using the equity method
Year ended June 30, 2018Year ended June 30, 2017

¥2 million¥(3) million(2) Consolidated financial position
Total assets
Millions of yen
28,12816,805

As of June 30, 2018
As of June 30, 2017
Reference: EquityNet assets

As of June 30, 2018:
As of June 30, 2017:Millions of yen
13,715
6,697

Equity ratio

Net assets per share%
48.3
39.2

Yen
641.30339.37¥13,581 million¥6,594 million(3) Consolidated cash flows

Year ended June 30, 2018Year ended June 30, 2017

Cash flows fromoperating activities
Millions of yen
5,144
2,274

Cash flows frominvesting activities
Millions of yen(2,720)(2,395)

1

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
2,415
9,410
764
4,581

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended June 30, 2017
Year ended June 30, 2018Year ending June 30, 2019(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

15.00
20.00

––

30.00
35.00

45.00
55.00

874
1,135

45.4
42.8

14.7
11.2

–

30.00

–

40.00

70.00

40.1

3. Forecast of consolidated financial results for the year ending June 30, 2019 (from July 1, 2018 to June 30, 2019)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
39,188
32.1
2,550
15.4
2,500
13.6
1,600
21.9
75.55
December 31, 2018
Full year
82,000
25.5
6,000
39.6
5,900
39.5
3,700
44.0
174.704. Notes(1) Changes in significant subsidiaries during the year ended June 30, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):

No(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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2018

21,179,400 shares As of June 30, 201719,433,000 shares

Number of treasury shares at the end of the period
As of June 30, 2018532 shares As of June 30, 2017493 shares

Average number of shares during the period
Year ended June 30, 2018

19,974,456 shares Year ended June 30, 2017

219,401,559 sharesReference: Summary of non-consolidated financial results
Non-consolidated financial results for the year ended June 30, 2018 (from July 1, 2017 to June 30, 2018)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended June 30, 2018Year ended June 30, 2017

Operating profit

Millions of yen25,315
21,160%19.6
24.5

Earnings per share
Year ended June 30, 2018Year ended June 30, 2017

Millions of yen
3,268
2,497

Ordinary profit%
30.9
19.8

Millions of yen
3,457
2,678

Profit%29.1
22.4

Millions of yen
2,176
1,895

%
14.8
30.3

Diluted earnings per share

Yen
108.96
97.71

Yen
108.3897.46(2) Non-consolidated financial position
Total assets
As of June 30, 2018
As of June 30, 2017
Reference: Equity

Net assets

Millions of yen
20,556
14,869As of June 30, 2018
As of June 30, 2017

Millions of yen
12,4506,045Equity ratio

Net assets per share%
60.5
40.6

Yen587.69
310.89¥12,446 million¥6,041 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Explanation of the appropriate use of earnings forecasts and other special notes
Earnings forecasts and other forward-looking statements stated in this document are based on information available to the Company and certain
assumptions that the Company considers to be reasonable. The actual results may differ materially from the forecasts due to various factors.
(Method for obtaining materials for financial results meeting)
Financial results meeting for institutional investors and analysts will be held on Friday, August 10, 2018. Materials for the meeting will be
provided on the Company’s website as soon as possible after the meeting.
In addition to the above meeting, the Company holds meetings for individual investors regarding our business and performance on a timelybasis. For the schedule of these meetings, please refer to the Company’s website.

3Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of June 30, 2017

As of June 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

4,581,972
6,245,524

9,410,098
10,045,310

Deferred tax assets
Allowance for doubtful accounts

529,790–754,291(28,151)

Other

642,408

763,262

11,999,695

20,944,811

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net

319,814439,154(81,302)(101,784)

238,511337,370Land

107,198

108,087

Other
Accumulated depreciation

286,715(204,454)

384,288(234,235)

Other, net

82,261150,052

427,970595,510

3,681,754
163,3215,658,927
218,002135

83,507

3,845,211

5,960,438

Deferred tax assets
Other

25,954506,233

57,854570,292

Total investments and other assets

532,187

628,146

4,805,369

7,184,095

16,805,065

28,128,906

Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets4

(Thousands of yen)
As of June 30, 2017

As of June 30, 2018

Liabilities
Current liabilities
Short-term loans payable

1,075,934

2,145,429

196,000
300,000

196,000
300,000

1,379
3,031,668–
4,208,966

Income taxes payable
Accrued consumption taxes

812,290742,448

1,017,617
1,817,284

Provision for bonuses
Other

600,943
880,668

966,235
1,754,275

Total current liabilities

7,641,333

12,405,809

Current portion of bonds
Current portion of long-term loans payable
Lease obligations
Accrued expenses

Non-current liabilities
Bonds payable

1,106,000

910,000

Long-term loans payable
Lease obligations1,200,000
10900,000–

Net defined benefit liability
Deferred tax liabilities

44,62824,03147,701
1,823

Other

91,978

147,585

2,466,649

2,007,110

10,107,983

14,412,920

Capital stock
Capital surplus

1,562,705
720,190

4,199,431
3,356,917

Retained earnings
Treasury shares

4,238,432(569)

5,830,208(690)

Total shareholders' equity

6,520,758

13,385,867

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

148721Foreign currency translation adjustment

73,917

195,397

Total accumulated other comprehensive income

74,065

196,118

4,028

3,575

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

598,230

130,424

6,697,082

13,715,985

16,805,065

28,128,906

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
June 30, 2017

Fiscal year ended
June 30, 2018

Net sales

43,035,463

65,363,585

Cost of sales

33,690,697

52,060,977

Gross profit

9,344,766

13,302,607

Directors' compensations
Salaries and allowances

225,224
2,216,035

279,335
3,373,295

Retirement benefit expenses
Offering cost

16,219448,897

20,730560,662

Taxes and dues
Other

158,8443,059,162

174,532
4,596,568

Total selling, general and administrative expenses

6,124,385

9,005,124

3,220,381

4,297,482

Interest income
Subsidy income

251
23,493261
46,324

Share of profit of entities accounted for using equity method
Other–
2,149

2,030
16,083

Total non-operating income

25,89564,699Non-operating expenses
Interest expenses

27,377

82,821

Bond issuance cost
Share issuance cost

20,083––29,463Foreign exchange losses
Share of loss of entities accounted for using equity method

6,359
3,766

9,788
–

Selling, general and administrative expenses

Operating profit
Non-operating income

Other

3,030

11,151

Total non-operating expenses

60,617133,225

3,185,658

4,228,957

179
209

722
11–

1,853

388

2,586

34,636–

10,113
170,643

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on reversal of share acquisition rights
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Settlement of contract amendment

34,636

180,757

Profit before income taxes

Total extraordinary losses

3,151,410

4,050,786

Income taxes - current

1,286,360

1,687,938

Income taxes - deferred(93,231)(227,869)

Total income taxes

1,193,129

1,460,069

Profit1,958,280

2,590,716

34,324

21,467

1,923,956

2,569,249

Profit attributable to non-controlling interests
Profit attributable to owners of parent6Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther 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

Fiscal year ended

Fiscal year ended

June 30, 2017

June 30, 2018

1,958,280

2,590,716

475
68,106572
119,660

967

161

69,549120,394

2,027,830

2,711,111

2,003,963

2,691,301

23,867

19,809Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended June 30, 2017
(Thousands of yen)
Shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

1,538,690

696,175

24,01524,015Retainedearnings
3,089,478

Treasury shares

Total
shareholders'equity(397)

5,323,946

Changes of items during period
Issuance of new shares

48,030

Dividends of surplus(775,003)(775,003)

Profit attributable to owners ofparent

1,923,956

1,923,956

Purchase of treasury shares

(171)

(171)

Net changes of items other thanshareholders' equity
Total changes of items during
period24,01524,015

1,148,953(171)

1,196,812

Balance at end of current period

1,562,705

720,190

4,238,432(569)

6,520,758

Accumulated other comprehensive income
Valuationdifference onavailable-forsale securities
Balance at beginning of current
period(327)

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensiveincome(5,613)(5,940)Shareacquisitionrights4,427

Non-controlling
Total net assetsinterests–

5,322,432

Changes of items during period
Issuance of new shares

48,030

Dividends of surplus(775,003)

Profit attributable to owners ofparent

1,923,956

Purchase of treasury shares
Net changes of items other thanshareholders' equity

(171)
475

79,53180,006(399)

98,230177,838

Total changes of items during
period475

79,53180,006(399)

98,2301,374,650

Balance at end of current period

148

73,91774,065

4,028

98,2306,697,082

8Fiscal year ended June 30, 2018
(Thousands of yen)
Shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

1,562,705

720,1902,636,726

2,636,726

Retainedearnings
4,238,432

Treasury shares

Total
shareholders'equity(569)

6,520,758

Changes of items during period
Issuance of new shares

5,273,453

Dividends of surplus(977,472)(977,472)

Profit attributable to owners ofparent

2,569,249

2,569,249

Purchase of treasury shares

(120)

(120)

Net changes of items other thanshareholders' equity
Total changes of items during
period2,636,726

2,636,7261,591,776(120)

6,865,109

Balance at end of current period

4,199,431

3,356,917

5,830,208(690)

13,385,867

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income148

73,91774,065

Shareacquisitionrights4,028

Non-controlling
Total net assetsinterests

98,2306,697,082

Changes of items during period
Issuance of new shares

5,273,453

Dividends of surplus(977,472)

Profit attributable to owners ofparent

2,569,249

Purchase of treasury shares
Net changes of items other thanshareholders' equity

(120)
572

121,479

122,052(452)

32,193

153,793

Total changes of items during
period572

121,479

122,052(452)

32,193

7,018,903

Balance at end of current period

721

195,397

196,118

3,575

130,424

13,715,985

9

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

June 30, 2017

June 30, 2018

3,151,410

4,050,786

DepreciationAmortization of goodwill

142,776
382,409152,351
642,873

Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability

142,177(15,954)

365,300
3,073

Interest and dividend income
Interest expenses(272)
27,377(312)
82,821

Share of loss (profit) of entities accounted for using equity
method3,766(2,030)Bond issuance cost
Loss on retirement of non-current assets

20,083
34,636–
10,113

SettlementOfContractAmendment
Decrease (increase) in notes and accounts receivable - trade–(985,706)

170,643(244,341)

Increase (decrease) in accrued expenses
Other, net

550,666
55,272

1,031,524
662,128

3,508,644

6,924,934

272(35,551)

312(81,525)

PaymentsForSettlementOfContractAmendment
Income taxes paid–
(1,198,423)(170,643)(1,528,246)

Net cash provided by (used in) operating activities

2,274,942

5,144,831(148,838)(220,214)(43,741)(136,189)(2,150,524)(2,313,299)(15,150)(30,081)(40,252)
2,990(95,301)
74,846(2,395,517)(2,720,240)

SubtotalInterest and dividend income receivedInterest expenses paid

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Purchase of shares of subsidiaries and associates
Net decrease (increase) in lease and gurantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable

3,000,000

2,000,000

Decrease in short-term loans payable
Proceeds from long-term loans payable(4,284,805)
1,500,000(3,350,814)–

Repayments of long-term loans payable
Proceeds from issuance of bonds–
1,379,916(300,000)–

Redemption of bonds
Repayments of lease obligations(98,000)(6,246)(196,000)(1,389)Proceeds from issuance of shares resulting from exercise ofshare acquisition rights

47,668

5,192,209

Cash dividends paid
Other, net(774,262)–(971,770)
43,755

Net cash provided by (used in) financing activities

764,269

2,415,990

Effect of exchange rate change on cash and cash equivalents

7,782(12,456)

Net increase (decrease) in cash and cash equivalents

651,476

4,828,125

Cash and cash equivalents at beginning of period

3,930,496

4,581,972

Cash and cash equivalents at end of period

4,581,972

9,410,098

10